The information, representations and statements contained in this consultation document have been prepared by the Energy Transformation Implementation Unit. It is provided to assist in understanding the approach being taken to develop amendments to the Electricity Networks Access Code 2004. Any views expressed in this consultation document are not necessarily the views of the State of Western Australia, the Government of Western Australia ( including the Minister for Energy), or the Energy Transformation Task Force, nor do they reflect any interim, firm or final position adopted by the Government in relation to the Electricity Grid Access Code 2004.
Access Code Electricity Networks Access Code 2004 AA4 Western Power Fourth Access Agreement AA5 Western Power Fifth Access Agreement AEMO Australian Energy Market Operator.
Introduction
Overview
Purpose of this paper
Making a submission
Accordingly, stakeholders should clearly specify whether the information they provide is confidential and should, where possible, separate confidential information from non-confidential information. Persons making confidentiality claims should familiarize themselves with the provisions of the Freedom of Information Act 1992 (Western Australia) which impose obligations on Energy Policy WA in relation to the release of documents.
Improving access to the Western Power network
- Background
- General approach
- Access Code main body
- Constrained network access
- Generator performance standards
- Transitional AQP
- Confidential information and publication of information relating to projects
- Capacity related concepts
- Competing application groups
- Applicant specific solutions
- Technical Rules
- Other changes
- Transitional ETAC
- Constrained network access
- Generator performance standards
- Bare transfers and assignment
- Transitional Contributions Policy
Further amendments to the ETAC, AQP and Contribution Policy may be put forward by Western Power during the consultation period for its fifth Access Arrangement and approved by the ERA, which will then apply to access agreements for Western Power's fifth Access Arrangement. Access agreements entered into with Western Power prior to the gazette of the changes will remain unchanged. The timing mismatch between the gazetting of the first part of access code changes on 18 September 2020 and the entry into force of Western Power's fifth access arrangement on 1 July 2023 creates a transition period during which the model and ERA-approved versions of the ETAC, AQP, and Contribution policy would be inconsistent with a restricted network access regime.
Specifically, the prohibition on Western Power entering into access contracts that do not permit curtailment (whether due to restrictions caused by other users or in connection with the operation of security-restricted economic dispatch) requires consequential changes to the ETAC, AQP, and Contributions Policy to allow new users to access Western Power's network on a basis consistent with the restricted access regime. The proposed approach is to insert amended versions of the ETAC, AQP and Contributions Policy as transitional documents to apply for the remainder of Western Power's Fourth Access Arrangement (AA4). Western Power will submit new versions of the ETAC, AQP and Contributions Policy to the ERA for approval as part of the AA5 process.
Leave the policies unchanged and Western Power will reopen the Access Scheme and submit revised policies to the ERA for approval. This section describes the additional passcode changes to improve access to the Western Power network and bring it into compliance with the generator performance standards requirements of the WEM Rules. The requirement for Western Power to maintain a record of reserve capacity in the transmission system has changed.
3 Note that new requirements have been placed on the Australian Energy Market Operator and Western Power to publish information. A new provision has been added (clause 26(b)) which clarifies that for a generator proposing to connect to the transmission system, Western Power is not obliged to make an access offer until the registered generator performance standards have been determined in accordance with the WEM -rules. At the investigation stage, Western Power is only obliged to inform the applicant of restrictions related to exit services.
Western Power provides AEMO with information on restrictions in order for AEMO to carry out its functions (clause 16.1). AEMO being able to issue instructions to users and Western Power in order to carry out its functions (clause 16.2). Immediate suspension 27.3 This provision clarifies that Western Power shall have the right to suspend the provision of services if a user breaches the generator's recorded performance standards or otherwise commits a breach of ETAC and such breaches have the effects described in clause.
Users may seek Western Power's consent to an ETAC assignment in accordance with the Transfer and Relocation Policy (within CPA). Assignments by Western Power must only be made with the user's consent and must not be unreasonably withheld or delayed (except where clause 32 applies).
Other amendments
Deferred revenue
Western Power's return on assets is expected to be significantly lower in AA5 due to the expected lower return outlook (a key driver of the WACC) at the start of the AA5 period. The impact of this is a drop in sales of the order of $150 million per year. This revenue decline could cause significant price fluctuations in future periods as the outlook for returns in AA6 improves.
Typically, decisions on the timeframe for recovery of deferred revenue are made by the ERA as part of the AA determination process. To provide certainty for Western Power and its customers, Western Power will have the option to accelerate the recovery of deferred revenue, provided there are no increases to any of their tariffs from the final year of AA4.
Minor amendments
Public consultation process
A7.22 This clause provides that a decision maker may undertake additional consultation if required (instead of a maximum of two rounds of consultation). In some cases the decision maker may need additional time to make a decision than that set out in Schedule 7. These provisions allow a decision maker to extend a time limit, but only if the decision maker reasonably determines that a longer period time is of the essence, and the decision maker has taken all reasonable steps to make full use of the time and processes otherwise permitted in Schedule 7.
A decision-maker must also publish notice of and reasons for his decision to extend a deadline.
Excess network usage charges
This should take into account the possible adverse consequences for the network, other users and the service provider of the user exceeding its contractual rights.
Next steps
