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CHANGES TO QUEENSLAND’S NATIONAL ELECTRICITY CODE DEROGATIONS
EXPLANATORY NOTE
Background
The changes to Queensland’s National Electricity Code (“Code”) derogations aim to make provision for the introduction of Market Network Service Providers (”MNSPs”) by:
1.generalising the definition of the Queensland region to remove geographic area specific references and facilitate the Code references to assignment of connection points to ‘reference nodes’;
2.including MNSPs in despatch and settlements in the Queensland market; and
3.generalising technical derogations to ensure that the introduction of MNSPs does not adversely affect the security and integrity of the Queensland system which will be operating according to conditions associated with it being in an ‘isolation period’ until such time as the synchronous link, QNI, is extended between Queensland and New South Wales.
This opportunity to amend the Queensland derogations has also been used to tidy up certain redundancies produced through changes elsewhere in the Code and to correct a number of typographical issues. It similarly reflects several changes included to clarify the application of the Code.
Competition Assessment
The changes proposed facilitate the introduction of entrepreneurial MNSPs into the Queensland market. As such they would be subject to the same tests used to assess the rest of the Code where these market participants are introduced.
On balance, it is expected that the introduction of MNSPs would permit greater competition with the capacity to arbitrage between the ‘spot market’ and the ‘Queensland market’.
Access Assessment
There are no access implications from these changes.
Total Assessment
It is contended that there are net public benefits in having these changes authorised.
Commentary on specific changes
Clause 9.32.1 (definitions)
The following definitions have been amended:
“exempted generation agreement” - clarified by the inclusion of a specific reference to amendments made prior to market commencement.
“isolation period” - amended to recognise that the Queensland system will remain isolated during any period when it is not interconnected to the power system by a synchronous link.
“Queensland distribution network” – amended to remove the geographic area emphasis.
“Queensland market” – amended to extend the definition to incorporate the possibility of non-Queensland source of power.
“Queensland region” – amended to extend the definition to incorporate distribution connection points outside Queensland.
Clause 9.34.1
Made general and not specific to the State of Queensland.
Clause 9.35.1
The following paragraphs have been amended:
(a)Extended to accommodated new expiry dates.
(c)(1)(B)Generalised to allow MNSPs to be dispatched into the Queensland market.
(c)(2)(E)Extended to include MNSPs.
(c)(3), (4)Corrected to update clause references.
Clause 9.35.3
Made general and not specific to the State of Queensland.
Clause 9.35.4
Makes region general and not specific to the State of Queensland, and provides for implementation of NSW actions should they be taken under clause 9.12.4.
Clause 9.35.5
Provides National Electricity Market Management Company (NEMMCO) with more flexibility in publishing PASA information and generalises the region definition.
Clause 9.35.6
Enables MNSPs to be dispatched in the Queensland market.
The removal of clauses 9.35.6(d) and (d1) (the ‘90 minute rule’) occurred on 1 October 1999.
Clause 9.35.6A
The following paragraphs have been amended:
(a)Includes a transitional provision to ensure settlements are possible at the expiry of this clause.
(b),(c)Provides for MNSPs to be paid for energy delivered to the Queensland market and provides a complimentary pricing arrangement for the MNSPs.
(d)Corrects three typographical errors.
Clause 9.35.8
Provides NEMMCO with more flexibility in publishing PASA information and generalises the region definition.
Clause 9.35.9
The following paragraphs have been amended:
(b)Extended to enable MNSPs to operate and corrects clause references.
(c),(d)Clarifies timing of clause operation.
(e)Transitional provision to ensure appropriate accounting and settlements.
(f)Extended to enable MNSPs to operate.
(g)Ensures settlements work for MNSPs.
Clause 9.36.1
Removes redundant clause reference.
Clause 9.36.2
Extends system security responsibilities to all connection points assigned to Queensland reference node.
Clause 9.36.5
Removes redundant clause.
Clause 9.37.12
The following paragraphs have been amended:
(a)Generalises the references to Queensland region.
(c)Extends technical standard to MNSPs.
Clause 9.37.14
Extends technical requirements to MNSPs.
Clause 9.37.15
Typographical.
Clause 9.37.18
Extends technical requirements to MNSPs.
Clause 9.37.19
Extends technical requirements to MNSPs.
Clause 9.41
Clarificatory link between 9.35.7 and schedule 9G.