Electricity Market Rules

General Counsel, Sue Renner

ElectraNet’s Strategic Vision – Network 2025

Based on the principles set down in the National Electricity Rules and the South Australian Electricity Transmission Code, ElectraNet developed a twenty year asset management strategy for the transmission network – Network 2025 (N2025).

Download the Network 2025 [pdf 3315kb]

The N2025 key principles may be summarised as follows:

  • To manage network development by taking a long term view;
  • To make the best possible use of technology;
  • Use whole of network thinking; and,
  • Anticipate customer and stakeholder expectations.

N2025 is intended to form the basis of an on-going partnering relationship between ElectraNet and its stakeholders for planning the long term development and management of the South Australian electricity transmission network.

ElectraNet has a legal obligation to provide South Australian electricity consumers with cost-effective, reliable infrastructure development solutions, in an economic, safe, socially and environmentally responsible manner. Provision of reinforced transmission infrastructure also supports future job creation, supporting regional economic development and employment opportunities.

Regulatory bodies

  • Australian Energy Market Commission (AEMC): administer the National Electricity Rules governing the provision of transmission services
  • Australian Energy Market Operator (AEMO): the system operator who publishes annual planning analysis of major national transmission flow paths.
  • Australian Energy Regulator (AER): sets total transmission service revenue every five years in accordance with the Rules and then monitors compliance with those Rules.
  • Essential Services Commission of South Australia (ESCOSA): administers transmission licenses and issues SA Electricity Transmission Code including service performance standards.

National Electricity Market (NEM)

As a Transmission Network Service Provider (TNSP) operating in the South Australian jurisdiction of the National Electricity Market (NEM), ElectraNet is bound by the service obligations of the National Electricity Rules (NER). The NER focuses on Power System Security and Quality of Supply and on a TNSP’s obligations with regard to network connection, network planning, establishing or modifying a connection point. In addition, the NER details the technical obligations that apply to all Registered Participants.

ElectraNet must also plan and operate its transmission system in accordance with the mandated reliability and security standards as set out in the NER. The NER requires ElectraNet to comply with the power system performance and quality of supply standards in schedule 5.1. The NER mandates system security requirements (operation allowing for next contingency) and reliability requirements (e.g. N-1 for meshed network). Clause S5.1.2.1 states:

“Network Service Providers must plan, maintain and operate their transmission and distribution networks to allow the transfer of power from generating units to Customers with all facilities or equipment associated with the power system in service and may be required by a Registered Participant under a connection agreement to continue to allow the transfer of power with certain facilities or plant associated with the power system out of service and may be required by a Registered Participant under a connection agreement to continue to allow the transfer of power with certain facilities or plant associated with the power system out of service, whether or not accompanied by the occurrence of certain faults (called “credible contingency events”).”

However, because of system security considerations, this obligation requires the non-radial portions of the power system to be planned on a single credible contingency (N-1) basis.

The NER also specifies the acceptable voltage levels that should be provided at the connection points. The latest version of the NER is available at the following link:

http://www.aemc.gov.au/rules.php

South Australian Electricity Transmission Code (ETC)

ElectraNet is also bound by the service obligations of the South Australian Electricity Transmission Code (ETC). The ETC focuses primarily on supply reliability at individual connection points.

The ETC assigns reliability standards for each connection (exit) point or group of connection points within the transmission network and thereby imposes specific requirements on ElectraNet for planning and developing its transmission network.