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

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 Market Formation, Uncertainty & Risk   Ring-fencing TBD & Commercial & interface interface costs TBD costs NSP receives NSP contracts NSP pursues an Status Quo: NSP undertakes SM services with market MC alternative Targeted Limited scope for through related for SM services “bypass” Installations as NSP to deploy Ring-Fenced MC solution or does Network and fully utilise not proceed Solutions smart meter services except in Victoria

Missed Opportunity in Network Solutions:

Increased Costs in NSP Ring-Fencing:

Risks to Access to MC Services:

Network Counterparty cannot mitigate risk  The Asset remains capable of providing Narrow MSS, Network Services are the service in the same format… 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 does not choose MC  NSP investments are sunk… No light-handed economic regulation

Low Confidence in 2 Proposed Solutions

Need for Light-Handed Regulatory oversight MCs with Market Framework Power & Agreements incentive appear ineffective Only price discipline is cost of bypass Regulatory Oversight required

An Asymmetric approach to the new market…

Cost Recovery and Exit Fees…