AEMC Public forum, competition in metering Network regulatory - - PowerPoint PPT Presentation

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Feb 27, 2023 156 likes •281 views

AEMC Public forum, competition in metering Network regulatory arrangements and access to Metering Coordinator services Overview Changing models of SM services to NSPs Prevented in AEMC Draft Decision Potential Exertion of $ Market Power

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AEMC Public forum, competition in metering Network regulatory arrangements and access to Metering Coordinator services

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Overview

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Changing models of SM services to NSPs

Status Quo: Limited scope for NSP to deploy and fully utilise smart meter services except in Victoria NSP receives SM services through related Ring-Fenced MC NSP undertakes Targeted Installations as Network Solutions

Ring-fencing TBD & interface costs TBD

NSP contracts with market MC for SM services

Commercial & interface costs Market Formation, Uncertainty & Risk Potential Exertion of Market Power

NSP pursues an alternative “bypass” solution or does not proceed

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Prevented in AEMC Draft Decision

$

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Missed Opportunity in Network Solutions:

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Increased Costs in NSP Ring-Fencing:

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Risks to Access to MC Services:

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Network Counterparty cannot mitigate risk

The Asset remains capable of providing the service in the same format…  Narrow MSS, Network Services are not Primary  No “Non-Reversion” Clause  Performance Levels? A new MC would not be willing…  Only Scheduled Meter Reads must be provided by the Metering Coordinator The MC would not increase the cost once NSP investments are sunk…  NSP does not choose MC  No light-handed economic regulation

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Low Confidence in 2 Proposed Solutions

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Need for Light-Handed Regulatory oversight

Regulatory Oversight required

Only price discipline is cost of bypass Framework Agreements appear ineffective MCs with Market Power & incentive

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An Asymmetric approach to the new market…

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