Regulatory

The Rules are made under the National Electricity Law (NEL). Chapter 5 of the Rules sets out the roles and responsibilities of connection applicants, network service providers and AEMO for network connections in the NEM (National Electricity Market).

In Victoria, the national arrangements are modified by assigning many of network service provider’s roles to AEMO. These arrangements are set out in Division 2 of Part 5 of the NEL, and Clauses 5.1.2 and 8.11 of the Rules. Chapter 6 of the Rules regulates the provision of distribution services. Chapter 6A regulates the provision of Shared Transmission Network services, and Clause 8.11 regulates augmentations to the Declared Shared Network (DSN).

The NEL and the Rules also provide for the protection of confidential information by AEMO, network service providers and connection applicants. Division 6 of Part 5 of the NEL contains AEMO's confidentiality obligations, while the obligations of applicants are listed in Clause 8.6 of the Rules. These provisions oblige all parties to protect confidential information, and permit certain information to be disclosed in certain circumstances.

Since mid-2005, the Australian Energy Market Commission (AEMC) and the Australian Energy Regulator (AER) have been responsible for overseeing and regulating the NEM. The AEMC is responsible for rule making in response to requests for rule changes, usually from NEM participants. The AER has responsibility for enforcing and monitoring compliance with the Rules, as well as responsibility for economic regulation of electricity transmission. Aggrieved NEM participants, including connection applicants, can access the dispute resolution process outlined in Clause 8.2 of the Rules.

In addition to the requirements of the NEL and the Rules, a range of federal, state and local planning laws apply to electricity projects, and these should be discussed with the relevant planning authorities.