Electricity Market Operations Rules
Last updated: 24 Dec 2010
Created Under Section 63C of the Electricity Supply Act 1995.
The following electricity Market Operations Rules are currently administered by Industry & Investment NSW - Minerals & Energy Division under the Electricity Supply Act 1995.
Market Operations (Arranged Connection Services) Rule No.1 of 2001
Commenced 1 January 2002, the objects of the Rule are to:
- facilitate the efficient provision of network services for the benefit of customers;
- deliver value to customers by promoting choice among competing providers of services;
- deliver to customers a single point of contact for the provision of electricity services;
- make provision for the keeping of customer information by the Distribution Network Service Provider (DNSP) and exchange of information between licence holders for the efficient coordination of the delivery of network and supply services.
Market Operations Rule No.1 of 2001 (32kb PDF)
Market Operations (Network Use of Systems) Rule No.2 of 2001
Commenced 1 January 2002, the object of this Rule is to provide specific arrangements in NSW in relation to network use of system services.
The Rule:
- specifies charging and billing arrangements between electricity retail suppliers and Distribution Network Service Providers (DNSPs);
- allows customers (other than small retail customers) and retailers to agree that the DNSP may charge the customer directly for network use;
- prevents small retail customers being directly charged for network usage;
- imposes an obligation on the supplier to pay network use of system services charges to the DNSP;
- provides billing and payment schedules, interest payable on unpaid amounts and dispute processes;
- provides that the DNSP may notify National Electricity Market Management Company Ltd (NEMMCO) of non-payment by a retailer;
- allows the DNSP to require the retailer to provide credit support (e.g. a bank guarantee) if the credit rating does not meet standards specified in the Rule;
- allows the DNSP to determine the level of credit support required;
- and the circumstances under which a DNSP may draw on the credit support.
Market Operations (NSW Transfer Rules for Retail Electricity Supply) which commenced 1 January 2001 were also revoked on 30 November 2001.
Market Operations Rule No.2 of 2001 (48kb PDF)
Market Operations Rule (NSW Rules for Electricity Metering) No.3 of 2001
Commenced 1 January 2002, the object of this Rule is to regulate electricity metering to the extent that it is not regulated by the National Electricity Code or the Metrology Procedure. The Rule applies to:
- all local network service providers licensed in NSW
- all retailers licensed in NSW
- all accredited service providers in NSW.
Market Operations Rule No.3 of 2001 (116kb PDF)
Market Operations (NSW Transfer Rules for Retail Electricity Supply) Rule No.4 of 2009
Initially commenced 30 November 2001, the object of this Rule is to integrate the NSW transfer requirements with the Australian Energy Market Operator's (AEMO) Market Settlements and Transfer Solutions (MSATS) Procedures and Systems by establishing requirements for:
- limiting the manner in which licence holders may use the MSATS Procedures and Systems to transfer small retail customers or alter information;
- evidencing consent to negotiated supply arrangements for small retail customers;
- the use by licence holders using Dispute Management Systems under AEMO's MSATS Procedures and Systems;
- providing National Metering Identifier Discovery Services;
- ensuring contractual cooling-off periods are adhered to;
- protecting the interests of small retail customers.
This rule was amended by gazettal on 21 December 2001 to accommodate transitional arrangements for the transfer of small retail customers until 1 July 2002. The amendment required a retail supplier to obtain a scheduled meter reading before completion of transfer process. This rule was further amended by gazettal on 25 September 2009 to provide for the bulk transfer of small retail customers.
This rule was further amended by gazettal on 24 December 2010 to reflect the commencement of the energy price comparison service and to maintain consistency with the Australian Consumer Law due to commence on 1 January 2011.
Market Operations Rule No.4 of 2009 (33kb PDF)
Market Operations Rule (Retailer of Last Resort) No.5 of 2009
Initially commenced 1 January 2002, the objects of the Rule are to:
- provide for implementation of last resort supply;
- facilitate necessary information flows to a retailer of last resort;
- facilitate arrangements between affected parties.
This rule was amended by gazettal on 25 September 2009 to ensure all small retail customers are protected by the NSW Retailer of Last Resort arrangements.
Market Operations Rule No.5 of 2009 (41kb PDF)
Market Operations Rule (NSW Electricity Business to Business Procedures) No.6 of 2004
Commenced 14 January 2005, the objects of the Rule are to:
- establish specific requirements for the efficient operation of business-to-business procedures in the NSW electricity market;
- require electricity licence holders to have the necessary business procedures, processes and systems required to operate in accordance with requirements detailed in the NSW Business to Business Procedures document and supporting business and technical specifications.
Market Operations Rule No.6 (NSW Electricity Business to Business Procedures) of 2004 (13kb PDF)