IEC and RMEC Annual Report Period ending 31 December 2012

Transcription

1 Information Exchange Committee & Retail Market Executive Committee C/ - IEC and RMEC Secretariat AEMO Ltd Level Collins Street Melbourne VIC 3000 Postal Address: GPO Box 2008 Melbourne VIC 3001 T F IEC and RMEC Annual Report Period ending 31 December 2012

2 Table of Contents ABBREVIATIONS AND GLOSSARY... IV 1 EXECUTIVE SUMMARY REFORM DRIVEN INITIATIVES CONTINUOUS IMPROVEMENT INITIATIVES PROCEDURE DEVELOPMENT SUMMARY RETAIL MARKET GOVERNANCE ARRANGEMENTS IEC AND RMEC ANNUAL REPORT REQUIREMENTS IEC AND RMEC OPERATIONS MEETING DATES AND KEY ISSUES CONSIDERED ELECTRICITY RETAIL MARKET PROCEDURE CONSULTATIONS NATIONAL SMART METERING NEM REFERENCE GROUPS Metrology Reference Group (MRG) B2B and MSATS Reference Group (BMRG) METROLOGY PROGRAM Embedded Networks Metrology Procedure update Queensland retail tariff reform National Measurement Institute project Further harmonisation of the Metrology Procedure Current Transformer Testing WG (CTTWG) NEM METERING ARRANGEMENTS MICRO GENERATION CUSTOMER AND SITE DETAILS NOTIFICATION (CSDN) PROJECT SMALL GENERATION AND NMI STANDING DATA (SGSD) PROJECT RETAILER OF LAST RESORT (ROLR) PROCESSES NETWORK BILLING RETAIL MARKET DATA DICTIONARY (RMDD) PROJECT ELECTRICITY RETAIL MARKET PROCEDURES B2B PROCEDURES B2B Procedures version METROLOGY PROCEDURES MSATS PROCEDURES MSATS Procedures version MSATS Procedures version NEM RoLR Processes V MSATS SYSTEM AND B2B E-HUB PERFORMANCE AGAINST PLANNED ACTIVITIES RETAIL MARKET PROGRAM MILESTONES (INCORPORATING IEC WORKS PROGRAM) MATTERS IMPACTING THE OPERATION OF THE IEC AND/OR THE RMEC IEC VACANCIES IEC & RMEC MEMBERSHIP STRUCTURE RETAIL MARKET PROCEDURE GOVERNANCE POLICY, REGULATORY AND TECHNOLOGY DEVELOPMENTS LOOKING FORWARD IEC AND RMEC MEMBERS Page ii

3 7.1 IEC CURRENT MEMBERS IEC MEMBERS - RESIGNED/RETIRING/REMOVED RMEC CURRENT MEMBERS RMEC MEMBERS - RESIGNED/RETIRING/REMOVED MEETING ATTENDANCE IEC AND RMEC WORKING GROUPS B2B AND MSATS REFERENCE GROUP (BMRG) METROLOGY REFERENCE GROUP (MRG) APPENDIX A: IEC AND RMEC MEETINGS AND ATTENDANCE APPENDIX B: RETAIL MARKET PROGRAM MILESTONE REPORT (AS AT DECEMBER 2012) Page iii

4 Abbreviations and Glossary AEMC AEMO AER AMI BPPWG BPPRG B2B CATS CSDN DNSP DPI DRET EMRWG ENA ERAA FRC FRMP IEC ISC MCE MSATS MSP NEM NMI NSMP NSSC RMEC RoLR Rules SCER SCO SGSD SME SMI WIGS Australian Energy Market Commission Australian Energy Market Operator Australian Energy Regulator Advanced Metering Infrastructure (Victorian smart metering infrastructure project) Business Process and Procedures Working Group Business Process and Procedures Reference Group Business to Business Consumer Administration and Transfer Solution Customer Site Details Notification Distribution Network Service Provider Department of Primary Industries (Victorian Government) Department of Resources, Energy and Tourism Electricity Market Reform Working Group (previously SCO) Energy Networks Australia Energy Retailers Association of Australia Full Retail Competition Financially Responsible Market Participant Information Exchange Committee Industry Steering Committee (Vic AMI) Ministerial Council on Energy, established by the Council of Australian Governments (COAG) (replaced by SCER) Market Settlement and Transfer Solution Metering Service Provider National Electricity Market National Meter Identifier National Smart Metering Program National Stakeholder Steering Committee (industry committee providing oversight to the National Smart Metering Program) Retail Market Executive Committee Retailer of Last Resort National Electricity Rules Standing Council on Energy and Resources (previously MCE & MCMPR) Standing Committee of Officials, established under the Ministerial Council on Energy (replaced by EMRWG) Small Generation Standing Data Subject Matter Expert Smart Metering Infrastructure Wholesale Interconnector Generator and Sample Page iv

5 1 Executive Summary The Information Exchange Committee (IEC) and the Retail Market Executive Committee (RMEC) worked jointly throughout 2012 in providing guidance and governance on retail market developments. The Committees and associated working groups responded to a number of reform initiatives affecting the operation of the retail market, and additionally initiated specific continuous improvement programs to enhance retail market business processes. Significant achievements and the benefits these delivered for participants are outlined in this report. 1.1 Reform driven initiatives National Smart Metering Program In 2010 the IEC and RMEC liaised with the National Stakeholder Steering Committee (NSSC) and AEMO agreed to a process for handover of the National Smart Metering Program SMI procedure development task, including the transfer of the NSSC s Business Process and Procedures Working Group (BPPWG). This was successfully concluded and handover occurred in January During 2011, the BPPWG finalised the Objectives, Scope, Assumptions and Principles and supporting Concept Diagrams for 27 business processes required to give effect to the National Minimum Functionality Specification for SMI. Midway through 2011, uncertainty on key policy issues had reached a critical point, inhibiting the progress of the BPPWG. Policy clarity was sought from the Smart Metering Working Group (involving jurisdictions and DRET and reporting to SCO/MCE). Resolution of identified policy issues was not available and therefore timeline for resolution remained unclear. The IEC and RMEC concluded it would be inefficient to continue developing the procedures and in September 2011, the MCE was advised of the suspension of SMI Procedure development work in favour of focussing effort on resolving the outstanding policy issues; and of criteria for restarting the procedure development work. Once policy clarity is obtained from the Smart Metering Working Group and other restart criteria addressed, SMI procedure development will be able to recommence. For the IEC and RMEC in 2012, arrangements were established to regularly review progress against the restart criteria, to monitor industry developments and to liaise with key stakeholders including DRET. National Smart Metering remained a key focus area for emerging energy market reform in 2012, however policy certainty did not emerge during 2012 and accordingly SMI procedure development work remained on hold. National Energy Customer Framework (NECF) The NECF comprises policy and regulatory arrangements to provide nationally consistent customer protection across the National Electricity Market (NEM) and gas markets. The reform represents the transfer of current state and territory responsibilities to the National Electricity Law, National Gas Law and the National Energy Retail Law. The intended implementation timing for commencement nationally, was identified as 1 July A number of retail market procedure changes were defined during 2011 to support elements of NECF implementation across industry participants. These were defined early to provide businesses sufficient lead time to make internal changes in time for 1 July 2012 NECF implementation. Key changes included supporting the new NECF customer classifications, NMI Discovery obligations and NEM ROLR Processes. Page 1

6 Commencement of NECF implementation was delayed for some jurisdictions, however industry-wide market procedures remained in a state of readiness for implementation as NECF was rolled out. In addition to the various procedure changes that were required to support NECF (MSATS 3.6 and NEM RoLR Processes version 1.2) the IEC and RMEC also provided a valuable forum for discussion of transitional and other issues relevant to industry and jurisdictions. Victorian Advanced Metering Infrastructure (AMI) In response to the Victorian Government s mandated AMI program, a Victorian AMI Process model was developed and used by Victorian participants to recommend process steps to be used by Retailers and Distributors during the Victorian Smart Metering role out. The Advanced Metering Infrastructure (AMI) Industry Steering Committee (ISC), agreed to donate the Victorian AMI Process Model to the IEC/RMEC and the Victorian Government Department of Primary Industries. While there is no obligation on the IEC/RMEC to manage the document, there may be opportunities to leverage the process model and the IEC/RMEC will consider these opportunities should they arise. National Measurement Institute The National Measurement Institute proposed lifting the trade measurement exemption for some categories of electricity meter following the publication of pattern approval specification (M6). This was reviewed and input provided to ensure the integrity of NEM metrology arrangements was maintained. 1.2 Continuous improvement initiatives Customer and Site Details Notification (CSDN) Projects Voluntary reviews of participant compliance with customer and site details notification B2B Processes during the course of 2009 and 2010 highlighted opportunities for significant improvements in these areas. Accordingly, a number of participants reviewed and improved their own internal processes. Additionally, an industry-wide CSDN project was launched with the objective of making the end-to-end CSDN process more efficient with a more robust compliance audit framework developed during The end-to-end project will address a complex set of issues including matters raised in CSDN audits, CSDN timing requirements for new connections, outage notifications to consumers and life support notification requirements. Substantial effort from working groups was undertaken during 2012 to define solutions and draft the necessary procedure changes. Implementation is targeted for November Small Generation and NMI Standing Data Project The Small Generation and NMI Standing Data (SGSD) project seeks to deliver change to improve NEM systems and processes relating to Small Generation and NMI Standing Data. (Small Generation being defined as generation associated with a NMI of small or large classification which can only be settled off market through arrangements such as feed in tariffs.) The issues and topics addressed by this project manifest themselves as apparent inefficiencies with respect to provision and obligations regarding NMI Standing Data, culminating in participant exceptions and billing inaccuracies. Small Generators are not clearly identified within NEM systems or processes and the project seeks to address this along with issues associated with small generator metering and estimation/substitution.. Substantial effort from working Page 2

7 groups was undertaken during 2012 to define solutions and draft the necessary procedure changes. This project is targeting implementation in November Current Transformer Testing Project At present, regulatory obligations require all low voltage current transformers to be tested within a ten year timeframe or according to an alternative testing practice as approved by AEMO. Some participants viewed these requirements as onerous and unnecessarily costly. A project was established to develop an initial strategy for low voltage current transformer (CT) testing to; demonstrate compliance with Chapter 7 of NER, minimise the inconvenience to customers, and optimise the cost burden on the market. In consultation with the current transformer testing working (CTTWG), initial testing strategy was developed to explore the feasibility of using a statistical testing methodology for in-service compliance testing for low voltage CTs. Working with the group CTTWG results of the alternate testing approach are set to be delivered in Retail Market Data Dictionary Project The Retail Market Data Dictionary project commenced with the objective of improving the understanding and quality of data used in the NEM retail market by providing a central industry reference point for data element definitions and terminology. During 2012 a framework was developed to consider the overall costs/benefits by creating an initial data set sample of data currently used in MSATS and B2B Procedures. This approach was used to highlight the desire to establish and address initial issues of misunderstanding or disparate views for data element terms exist. Engaging with electricity participants via IEC and RMEC reference groups, there did not appear to be an appetite among industry participants to establish a data dictionary. Responses from industry indicated that a data dictionary may impose substantial costs on participant systems depending on the application of the data term/element in participant processes and back end systems. The Committee agreed with the recommendations, not to progress the RMDD project itself, instead requested a strategy to improve erroneous terms & definitions as part of future changes or major projects where possible and that did not impose a significant cost to participant processes or downstream systems. 1.3 Procedure development summary Procedure or Build Content Approved / Final Determination Effective B2B MDP in the Rules - LNSP nomination of FRMP (New Connections) MSATS NECF in respect of Customer Classification and NMI Discovery Follow-Up MSATS NMI Discovery 3 - MDP in the Rules - LNSP nomination of FRMP (New Connections) - Small Generator Aggregator 18 March May Jan July March May 2013 NEM RoLR Processes - NECF RoLR provisions 14 Feb July 2012 Page 3

8 version 1.2 Metrology Procedure Part A v Queensland retail tariff reform 1 July 2012 MSATS release NECF in respect of Customer Classification and NMI Discovery Follow-Up 1 July Retail market governance arrangements Governance for electricity retail market procedures is depicted in the figure below. NER IEC Obligations: Clause 7.2A.2(g)(3) AEMO Obligations: Clause 7.2.8(b) 2 1 Advise AEMO on changes to MSATS and Metrology Advise IEC on B2B issues and propose Changes to B2B Procedures Advise RMEC on changes to MSATS and Metrology Propose changes to MSATS Procedures Propose changes to Metrology Procedure Propose changes to Metering Services Documents BMRG MRG MSWG B2B CATS WIGS Metrology Procedure Metering Services Documents 1. RMEC established by AEMO 2. IEC established under NER 7.2A.2 3. BMRG B2B and MSATS Reference Group 4. MRG Metrology Reference Group 5. MSWG - Metering Services Working Group Various reference and working groups supported procedure development and other key retail market projects during These groups comprise subject matter experts (SMEs) from across participant organisations who, with the support of their organisation, dedicate significant effort and energy to workshops and meetings held across the NEM. The contribution by these reference groups and working groups to the various retail market initiatives implemented during 2012 is acknowledged by the IEC and RMEC. Page 4

9 In 2011 the IEC and RMEC agreed that the existing NEM retail market governance arrangements no longer align with current practice, and more importantly are inadequate for emerging market requirements such as national smart metering procedures. The IEC/RMEC agreed a refined governance framework for all electricity retail market procedures that is adaptable to emerging market needs is required. During 2012, the IEC and RMEC endorsed criteria for assessing governance framework options and reached in-principle agreement on an effective and efficient governance framework. The IEC/RMEC agreed to target mid-2013 for preparation and submission of a rule change supporting the refined governance framework. Further information on the key initiatives and projects summarised above is provided in the body of this report. Page 5

10 2 IEC and RMEC Annual Report requirements The IEC and RMEC has been prepared in accordance with the following requirements: Section 7.2A.2(q) of the National Electricity Rules Clause 11.2 of the IEC Operating Manual and clause 11.2 of the RMEC Operating Manual 3 IEC and RMEC operations 3.1 Meeting dates and key issues considered The IEC and RMEC generally met jointly on a bi-monthly basis throughout Meeting dates and other information are detailed in the attached record of attendance (Appendix A). Meeting agendas, papers and minutes are made available to registered participants electronically - to Nominated Representatives via and via AEMO's document management processes. Key issues considered and addressed by the committees during 2012 are described below. 3.2 Electricity retail market procedure consultations As detailed in the Rules, the IEC is responsible for the consideration, consultation and recommendation to AEMO of amendments to the B2B Procedures. The RMEC and its associated reference group provide guidance to AEMO on proposed amendments to the Metrology and MSATS Procedures and other retail market issues. A number of proposals to amend the retail market procedures were dealt with throughout Details of amendments to the electricity retail market procedures that were implemented are provided in Section National Smart Metering MCE had proposed the AEMC undertake work to inform policy in this area, however the Access and Contestability Review by the AEMC is unlikely to be finalised until In September 2011, the IEC and RMEC considered it would be an inefficient use of industry and AEMO resources to continue developing the prioritised procedures with a number of policy issues outstanding. After seeking input from consumer representatives who expressed similar concerns, the IEC and RMEC advised MCE of its decision to suspend SMI Procedure development work in favour of focussing effort on resolving the outstanding policy issues. The Business Processes and Procedures Reference Group (BPPRG) finalised the Objectives, Scope, Assumptions and Principles and supporting Concept Diagrams for the [27] business processes required to give effect to the National Minimum Functionality Specification for SMI. This consolidated the SMI procedure development work up to that point in time and provided a good foundation from which to recommence that work, once the outstanding policy matters are resolved. Page 6

11 The IEC and RMEC put in place arrangements to review progress on the restart criteria, monitor industry developments and liaise with DRET and other key stakeholders on a regular basis throughout NEM Reference Groups The IEC and RMEC are supported by Reference Groups comprising industry representatives with relevant technical and other skills and experience. The Metrology Reference Group (MRG) is formed to provide recommendations to the RMEC and AEMO on the resolution of Metrology and Metering Services issues in the NEM. The BMRG was established as a reference group in February 2011 as a result of the consolidation of the PDRG 1 and BPRG 2. The BMRG is both an AEMO and IEC Reference Group formed to review material related to retail market business, data processes, B2B and MSATS processes, procedures and/or AEMO projects to provide advice to the IEC, RMEC and AEMO Metrology Reference Group (MRG) The Metrology Reference Group (MRG) met regularly during 2012 to consider a range of metrology issues and to provide advice to the RMEC and AEMO on those issues. Areas of focus for the MRG included; Metrology Procedure amendment to facilitate Queensland retail tariff reform Consideration of Metrology Procedure amendments to facilitate introduction of Full Retail Contestability in Tasmania National Measurement Institute process for lifting of trade measurement exemptions Unmetered loads Small generation and standing data project Embedded networks Meeting agendas, papers and minutes from the MRG are made available to participants via B2B and MSATS Reference Group (BMRG) The BMRG met on a regularly basis during 2012 to consider a range of process and procedure issues and to provide advice to the IEC, RMEC and AEMO on those issues. Areas of focus included; Formal publication and implementation off the NEM Change Management Process. Develop and review of a significant number of submissions for enhancements relating to the National Energy Customer Framework (NECF) 1 The Business Process and Data Reference Group (PDRG) was established as a reference group under the RMEC for defining and coordinating the implementation of NEM business processes associated with metering and retail market developments 2 The B2B Procedures Reference Group (BPRG) was established as a reference group under the IEC, for defining and coordinating the implementation of B2B business processes associated with metering and the retail electricity market. Page 7

12 3.5 Metrology program Application of the Cost Benefit Analysis process under the NEM Change Management Process to support the ongoing prioritisation and implementation of industry enhancements. This includes ensuring compliance to the NEM and B2B Objectives to provide an overall net benefit to the NEM of all enhancements implemented. Development and enhancement of the MSATS, RoLR and B2B Procedures. During 2012 the RMEC provided oversight for AEMO's Metrology Program. The Program delivers changes to the specification of metrology requirements and metering services arrangements within the NEM Embedded Networks Input was made to AEMC s Power of Choice Review and Review of Market arrangements for electric vehicles to ensure proposed embedded provisions are suitable for the NEM Metrology Procedure update Queensland retail tariff reform From 1 July 2012, the Queensland Government removed access to standard (regulated) retail electricity process for large non-residential customers in South East Queensland (SEQ) who consume more than 100 MWh per annum, pursuant to its review of retail electricity pricing and tariff structures. Under the previous Metrology Procedure, once these customers entered the market, they were required to have a meter of Type 1 to 4 (interval) metering installation, rather than the Type 6 (accumulation) metering installation which many of them have at present. However, the Queensland government believed that it was unlikely that retailers will be able to ensure that all large non-residential market customers in SEQ have the required metering in place by 1 July To address this, they introduced a 12 month transitional period, during which large non-residential market customers in SEQ who had a Type 6 metering installation were permitted to remain on Type 6 while their retailer arranged for the meter to be upgraded or replaced. AEMO facilitated the consultation to amend the Metrology Procedure to include the required transitional arrangements to implement this tariff reform, and have subsequently supported the Queensland jurisdiction with any regulatory, operational or compliance issues that have arisen National Measurement Institute project The National Measurement Institute project aims to identify overlaps and gaps and assign responsibilities relating to metrology provisions in the Rules that relate to the National Measurement Institute (NMI). The project will also review existing National Measurement Institute guidelines and compare these against NEM requirements. The exemptions have been lifted since 1 January 2013, and have not introduced any new provisions that impact the Rules. A review of the guidelines that clarify the application of the requirements of the National Measurement Act to metering installations, as required by the Rules, has been completed. As of 1 January 2013 the exemption on trade measurement requirements for electricity meters will be removed. Page 8

13 3.5.4 Further harmonisation of the Metrology Procedure The initial harmonised NEM Metrology Procedure was published in The metrology procedure contains a number of tables of difference for jurisdictional material, and a review of the remaining differences is timely. The desired outcome is to firstly harmonise as many differences as possible, and secondly to assign review dates to remaining jurisdictional differences in line with Rules requirements. A secondary outcome is to clarify provisions for Tasmania for their introduction of contestability for the next tranche of customers on 1 January Discussions have been held with the Victorian, South Australian, Queensland and New South Wales jurisdictions. A meeting was held with Tasmanian representatives to discuss their requirements. The next step will be a joint meeting with all jurisdictions to finalise the changes by quarter Current Transformer Testing WG (CTTWG) In response to a request from industry, the RMEC requested AEMO to convene a working group to investigate matters relating to the testing of instrument transformers, and to propose an approach to testing going forward that would be compliant with Chapter 7 of the Rules. The group is known as the Current Transformer Testing Working Group (CTTWG). The CTTWG was formed to provide recommendations to the RMEC on the optimal methods and processes for the in-service testing of low voltage current transformers which address the need to: Demonstrate to the NEM the ongoing in-service accuracy compliance of energy consumption measurement for metering installations incorporating low voltage current transformers, Minimise the inconvenience to customers from the interruption to supply during testing, and Optimise the cost burden on the market and ultimately to the customer and promote market efficiency in line with the NEM objectives. Test plans have now been submitted by 15 RPs, and the first round of testing has commenced. The dates going forward agreed with the AER are shown below: Date April 2012 June 2012 July 2012 June 2013 July 2013 Milestone RPs to submit test and inspection plans to AEMO for approval Test and inspection plans approved by AEMO Initial 12 month test period Commence review of compliance plan During the first half of 2013 AEMO will develop a strategy to evaluate the effectiveness of the CTTWG test program. This strategy will be used to evaluate the validity of the first round of testing, and propose relevant changes going forward. Page 9

14 3.6 NEM Metering Arrangements AEMO presented a paper which the content of was created to inform the AEMO Board and aimed to provide a better understanding of the metering framework, AEMO s role in the accreditation and compliance process and how robust the framework is for the future. The paper was provided to the IEC/RMEC for information purposes and for discussion particularly on the evolving and emerging energy initiatives. The papers raised the question(s): how robust is the framework for the future; is there any driver for change or a need to consider evolution of these arrangements? The committee examined the present metering framework, noting that current and future developments went outside the boundaries of that framework and the absence of regulation and legislation for these developments was an issue. It was discussed that conclusion of the current AEMC Review of Electric Vehicles underway, issues paper published, a round of consultation and forums to be held, that no further timeframes had been indicated and it is possible that any further decisions on this would be postponed until consumer pricing is resolved. The review was examining options for metrology such as disaggregation of a connection point and what models can be considered within that framework. The committee noted that micro generation and electric vehicles were a significant issue in regard to connection points and that this issue involved different stakeholder needs (for example: consumers, AEMO, retailers and distributors). Due to the large number of parties, processes and reviews (such as the AEMC s Review of EV, contestability review and the demand side participation review) underway involving the metering framework, the committee felt that it would be useful to group and sequence these inter-related activities. This would allow some of the issues raised to be allocated to a responsible party for review and to clarify if an area was already being looked at. This would give the committee a better understanding of the various reviews underway/completed and any potential ramifications for the metering framework. It would also allow the committee to identify any potential aspects that they could do further work on. The committee agreed that further work should be done on grouping the existing activities and reviews which may lead to the development of new process or vision for the long term. 3.7 Micro Generation A micro Generation Scoping paper was developed, led by Committee members, Alex Cruickshank (AGL) and Peter Weaver (Energex). The paper highlighted a number of issues, particularly noting that current legislation had not kept up with the developments of the energy market particularly in regards to the management of connection points. For example, Queensland legislation is silent on the separation of connection points, ie; one person can own the load and another person own the generation in a household. A policy is now required to address this issue in order to ensure consistency in implementation and practise in the market. The issues in the paper developed coincide with those in the NEM Metering Arrangements paper. Incentives for customers currently do not align with process and costs resulting in perverse outcomes for minimal market and consumer benefit. Page 10

15 In most jurisdictions metering services are classified as control services; however in NSW there is a proposal to classify these as alternative control services which would then be regulated separately. It was suggested that one part of this project would be developing an industry paper on the most efficient way to design a policy on micro generation and to make this available to regulators for review. The committee noted that the development of new policy was an important way of keeping industry relevant in the long term. While the current Rules provide some guidance, the consensus was, more was needed to further define the best outcome. The committee noted there was overlap with AEMO s Small Generation Rule change proposal, and suggested the scoping paper be further revised to crystallise the matters to be addressed, identify the most significant issues, potential changes to the regulatory framework and also include options for the IEC/RMECs involvement. 3.8 Customer and Site Details Notification (CSDN) project AEMO initiated the Customer and Site Details Notification (CSDN) project following AEMO Board approval of a business case provided by industry, and a CSDN Working Group was established to support the work. The CSDN project seeks to deliver change to improve NEM systems and processes relating to customer and site transactions between retailers and DNSPs. These processes are currently defined in the B2B Procedure Customer and Site Details Notification Process and the NEM Retailer of Last Resort (RoLR) Processes procedure. The project will seek to resolve issues that were raised in previous CSDN audits, CSDN timing requirements for new connections, outage notifications to consumers and life support notification requirements amongst others. Initiation, scope definition and high level requirements gathering was completed in December 2011 and the IEC and RMEC endorsed proceeding with development of detailed requirements and solution selection delivered in December The complexity of the work involved in the various phases of the project, including detail requirement definition, solution assessment, consultation and system builds, will take time to work through and as a consequence implementation is scheduled for November Small Generation and NMI Standing Data (SGSD) project In 2011 AEMO initiated the Small Generation and NMI Standing Data (SGSD) project following AEMO Board approval of a business case provided by industry. The SGSD project seeks to deliver change to improve NEM systems and processes relating to Small Generation and NMI Standing Data. (Small Generation being defined as generation associated with a NMI of small or large classification which can only be settled off market through arrangements such as feed in tariffs.) The issues and topics addressed by this project manifest themselves as apparent inefficiencies with respect to provision and obligations regarding NMI Standing Data, culminating in participant exceptions and billing inaccuracies. Currently Small Generators are not clearly identified within NEM systems or processes and the project seeks to address this along with issues associated with small generator metering and estimation/substitution. Initiation, scope definition and high level requirements gathering was completed in December 2011 and the IEC and RMEC endorsed proceeding with development of Page 11

16 detailed requirements throughout 2012 and solution selection delivered in December The complexity of the work involved in the various phases of the project, including detail requirement definition, solution assessment, consultation and system builds, will take time to work through and as a consequence implementation is scheduled for November Retailer of Last Resort (RoLR) Processes Post prioritisation of the National Energy Customer Framework (NECF) enhancements and projects for 2012 registered in the online issues management system, Quality Centre, the BMRG developed consultation packs for the NEM RoLR Processes version 1.2 which is planned for a Final Determination and effective date to align with the NECF effective date of 1 July 2012 as there are no impacts to participant systems or the MSATS/B2B e-hub release. The Initial Consultation was published on 6 October 2011 with participant responses received on 11 November The changes proposed primarily relate to terminology changes as a result of the introduction of the RoLR Plan under NECF. The Final Determination was published on 14 February Network billing A paper prepared by IEC/RMEC committee members summarised the arrangements for maintaining existing jurisdiction based Network Billing protocols and their respective governance arrangements. The analysis was aimed at highlighting alternative governance options to maintain the various standards. The IEC/RMEC noted that Network Billing arrangements are different in each jurisdiction. Over time, some degree of harmonisation may be possible where cost/benefit justified opportunities are identified. Without a single governance framework overseeing network billing arrangements, it is unlikely that any such harmonisation opportunities will be identified. Accordingly the IEC/RMEC concluded there was benefit in exploring network billing governance options. The Committee decided that further information was needed regarding the governance framework and that a scoping paper be developed to examine alternate governance arrangements. The Committee noted the following; committee members agree in principle to exploring with the relevant jurisdictions whether responsibility for network billing procedures could transfer to the IEC. The first stage would be for committee members to arrange informal discussions with their jurisdictions about the potential for transitioning network billing procedures over to IEC control. Peter Weaver agreed to raise the issue in Queensland; Keith Yates agreed to NSW; Brendan Bloore was nominated to undertake Victoria and South Australia discussions, as it was felt that this issue impacted DNSPs to a greater extent. The IEC and RMEC and AEMO agreed to consult and obtain legal advice in order to explore what steps are needed toward transitioning governance from each of the Page 12

17 jurisdictional Network Billing standards to a single framework under the IEC and RMEC. The review conducted represents the first initial steps prior to approaching jurisdictions formally about a governance review of Network Billing protocols. Next stage to be executed in 2013 includes, developing a formal request for the transfer of network billing control to the IEC, with the IEC working with jurisdictions to develop an alternate national governance framework Retail Market Data Dictionary (RMDD) project The primary goal of the RMDD is to drive improved understanding, usage and quality of data across the retail electricity market, to identify the current disparate views of data terms in the retail market procedures and to assist the industry to move to a consistent and single definition for each data element. Accordingly in December 2011 the IEC and RMEC considered how the project could be progressed using a variation to the approach. The original approach/scope was set more broadly and addressed both business and technical data elements whereas changes to retail market arrangements and participant systems that have occurred since the initial RMDD work in 2009, justified a more focussed and staged approach. By December 2011 the IEC and RMEC: Confirmed the RMDD had the potential to provide benefits to participants Endorsed proceeding with RMDD stage 1 approach which included the following deliverables; RMDD draft framework; BMRG, MRG, MSWG and AEMO feedback on costs/benefits; and Initial data set sample for MSATS and B2B Procedures. The first stage aimed to establish the framework, consider the overall costs/benefits and create an initial data set sample of data currently used in MSATS and B2B Procedures. This approach was used to highlight the desire to establish and address initial issues of misunderstanding or disparate views for data element terms exist. Engaging with electricity participants, the IEC and RMEC reference groups, there did not appear to be an appetite among industry participants to establish a data dictionary. Responses from industry indicated a change could impose substantial costs on participant systems depending on the application of the data term/element in participant back end systems. The committee noted the CSDN Audit project would have some cross-over with the RMDD objectives. Members discussed the option of deferring of the RMDD development until after the CSDN Project concluded and the reference groups could re-examine whether any standardisation of terms and definitions could occur. The Committee agreed with the recommendations, not to progress the RMDD project itself, instead requested a strategy to improve erroneous terms & definitions as part of future changes or major projects where possible and that did not impose a significant cost to participant processes or downstream systems. Page 13

18 4 Electricity retail market procedures B2B and MSATS procedure changes, including associated system changes implemented during 2012 are described below. 4.1 B2B Procedures The IEC managed changes to the B2B Procedures or took other action in relation to the B2B Procedures during 2012 as described below B2B Procedures version 1.9 A program plan for the development and consultation on B2B Procedures version 1.9 was drafted during Prioritisation of the enhancements for 2012 registered in the online issues management system, Quality Centre, the BMRG developed consultation packs for B2B Procedures version 1.9 which is planned for a Final Determination and effective date to align with the May 2013 MSATS/B2B e-hub release. The first stage of consultation commenced on 7 November 2012 and participant responses were received 13 December The Draft Determination published on 16 January 2013 with participant responses due by 31 January The IEC to review participant responses and published a Final Determination on 18 March The proposed changes impact the B2B Procedure Service Order Process to clarify the allocate NMI Service Order type obligations for NSW and the ACT. The terminology changes for MDP in the Rules impacting all of the B2B Procedures to account for the new definitions and were developed as a result of a request from industry. 4.2 Metrology Procedures The RMEC provided oversight to and/or advice on the work undertaken by the Metrology Reference Group and AEMO, including amendments to the Metrology Procedures. There were no Metrology Procedure consultations during the reporting period. Refer to section 3.5 for information on metrology developments. 4.3 MSATS Procedures AEMO managed changes to the MSATS Procedures or took other action in relation to the MSATS Procedures during 2012 as set out below. Several MSATS Procedure consultations were progressed to support enhancements delivered in MSATS build MSATS Procedures version 3.6 Post prioritisation of the National Energy Customer Framework (NECF) enhancements and projects for 2012 registered in the online issues management system, Quality Centre, the BMRG developed consultation packs for the MSATS Procedures version 3.6 which is planned for a Final Determination and effective date to align with the May 2012 MSATS/B2B e-hub release. The first stage of consultation commenced on 7 September 2011 and participant responses received on 13 October AEMO and the BMRG reviewed participant responses and published the Draft Determination and Report on 11 November Participant responses to the Draft Determination are due on 28 th November, Page 14

19 The changes proposed primarily relate the introduction of the processes required to accommodate regulatory changes under the NECF Customer Classification and NMI Discovery Follow-Up obligations for MSATS Procedures version 3.7 Post prioritisation of the enhancements and projects for 2012 registered in the online issues management system, Quality Centre, the BMRG developed consultation packs for MSATS Procedures version 3.7 which is planned for a Final Determination and effective date to align with the May 2013 MSATS/B2B e- Hub release. The changes within this release coincide with changes affecting version 1.9 of the NEM B2B Procedures. Changes included NMI discovery type 3, inclusion of MDPs (consistent with the Rules), LNSP nomination of FRMP and small generator aggregator NEM RoLR Processes V1.2 In late 2011, NEM RoLR Processes V1.2 was released for initial consultation, by AEMO and the IEC, and closed participant submissions on 29 December The proposed changes to the NEM RoLR Processes (Part B B2B Procedure) included the following amendments with regard to the National Energy Customer Framework (NECF): Incorporating the term Insolvency Official along with the Suspended Retailer to clarify that a failed retailer (or its insolvency official) must provide customer details and other customer information in circumstances other than a RoLR event is not usually provided. Reflect the Australian Energy Regulator (AER) s new RoLR functions within the NEM RoLR Processes. In February 2012 AEMO and the IEC approved the NEM RoLR Processes Final Determination Change Pack (Part B B2B Procedure) and the NEM RoLR Processes Version 1.2 (Part B B2B Procedure) and publication of the Final Determination in accordance with the National Electricity Rules. 4.4 MSATS system and B2B e-hub MSATS system developments associated with procedure changes were implemented and/or progressed well. The following MSATS build/s implemented/remain on schedule; Build May 2012 (including changes proposed MSATS Procedures V3.6 which are primarily linked to NECF obligations for Participants) Planning and requirements gathering progressed for the following MSATS build; Build (including changes proposed in B2B Procedures V1.9 and MSATS Procedures V3.7) Page 15

20 5 Performance against planned activities 5.1 Retail market program milestones (incorporating IEC Works Program) An overview of the performance against the published milestones (including the IEC Works Program) is provided in as Appendix B. 6 Matters impacting the operation of the IEC and/or the RMEC 6.1 IEC vacancies As a consequence of the resignation of Camille Hymer and Randall Brown from the Information Exchange Committee, AEMO called for nominations to fill the resulting vacancies. The number of nominations received did not exceed the number of vacancies; accordingly a ballot of Eligible Voters was not required. The annual IEC election process commenced in May 2012 with a call for nominations for three positions with terms expiring 30 June Nominations closed on Friday 15 June 2012 with the following outcome: Randall Brown - elected unopposed - appointed effective 1 July 2012 representing Retailers. Keith Yates (Ausgrid) elected unopposed - appointed effective 1 July 2012 representing DNSPs. 6.2 IEC & RMEC membership structure There are eight members of the IEC: three members represent Local Retailers and Market Customers three members represent Distribution Network Service Providers (DNSPs) two independent members (one of which is chair) There are seven members of the RMEC: three members represent Local Retailers and Market Customers three members represent Distribution Network Service Providers (DNSPs) one AEMO member (chair) IEC elections are held annually and new members are elected for three year terms except when replacing a member who has resigned or been removed before the end of their term. AEMO invites IEC retail and distribution members to also become RMEC members. Further information is provided in section Retail Market Procedure Governance Throughout 2012, IEC and AEMO expanded on the initial first draft rule changes that aim to replace the detailed IEC functions in the Rules. Draft samples for an Approved Process, Operating Manual and Election Procedures were also developed. The Operating Manual and Election Procedures set out requirements similar to those in clauses 7.2A.2 and 7.2A.3, subject to changes agreed by the IEC and RMEC. AEMO produced set of draft documents; Information Brief DRAFT Rule changes proposal (rule drafting only); DRAFT (Sample RMPC Approved process Page 16

21 DRAFT (Sample) RMPC Operating Manual DRAFT (Sample) RMPC Election Procedures. The Approved Process for making Retail Market Procedures would apply in addition to the Rules consultation procedures in clause 8.9 of the Rules. The approved process won t repeat the steps, but explain how AEMO must conduct supplementary consultation through a committee (Retail Market Procedures Committee RMPC (TBC)). Under the Rules, the approved process itself would be made and amended in accordance with the Rules consultation procedures. One of the Committee s initial objectives was to agree on a timeline for development in order to maintain momentum and be in a position to submit a Rule change proposal by mid The following timeline was proposed; Receive feedback from IEC/RMEC Committee members on the attached draft Rule change package by 21 December Sub group of the IEC/RMEC to workshop feedback changes on 17 January Seek IEC/RMEC endorsement of draft changes on 14 February Release Rule change package and conduct broader industry consultation commencing 15 February 2013 (submissions to close by 14 March). Conduct an open industry forum on 28 February Sub group of the IEC/RMEC to update draft package by 21 March Finalise draft Rule change package by 28 March IEC and RMEC endorsement 11 April Policy, regulatory and technology developments In addition to the developments discussed in the preceding sections, various policy, regulatory and technology developments had implications for the operations and/or work programs of the IEC and RMEC throughout 2012 and on an ongoing basis. These included: Further policy development of the National Smart Metering Program (NSMP) the Victoria AMI project, with rollout of smart meters throughout 2012 and the review of that program which created uncertainty as to the continuation of that program, and other jurisdictional smart metering activities Staggered implementation of the National Customer Energy Framework (NECF) including proposals for a national Retailer of Last Resort scheme 6.5 Looking forward The IEC and RMEC held a joint forward strategy workshop on 21 November 2012 to discuss the development of input/advice for AEMO in relation to B2B and other retail market processes. The workshop included discussion on; Emerging Energy Market Reforms IEC/RMEC Environmental Scan Retail Market Procedure Governance Current IEC/RMEC Working Group Relationships (CBA, Change management, process updates). Page 17

22 Review Status CSDN and SGSD Projects status & Timeline. Challenges and Future Strategies and Direction Future actions Key note speakers invited to the strategy workshop included; Dr Rory Campbell AMEC Power of Choice Mr Oliver Story DRET Energy White Paper Mr Tom Sykes NBN Co National Broadband The IEC and RMEC also agreed to maintain the current schedule of meetings agreed at last year s strategic workshop, with the action of reviewing the need for bi-monthly teleconferences in June The IEC and RMEC continued to meet: Bi-monthly face-to-face meetings Bi-monthly teleconferences (in between face-to-face meetings) these meetings focus on the reviewing the Retail Market Program Milestone Report An Annual Strategy Workshop scheduled for November 7 IEC and RMEC members 7.1 IEC current members Arun Wadhwa Retailer Member, elected Arun is Manager, Network Performance at Origin Energy Arun has extensive experience (11 years) leading specialist teams responsible for the day to day management of support services, including the provision of meter data services, network billing reconciliation, retail settlements, margin assurance retail assurance and network relations. Fiona Savage Retailer Member, elected Fiona is Senior Industry Development Manager with Energy Australia responsible for ensuring Energy Australia s interests are represented appropriately. Fiona has over 6 years experience working within the Energy Industry responsible for designing and establishing process impacting retail sales & contracting, transfers, service orders, metering services, accounts receivable, network reconciliation for small 2 nd tier retailer. Fiona has also held the position of Regulatory Manager and has been an active member of the Victorian AMI Program. Shaun Dennison Independent Member, re-elected Shaun is Director and co-founder of Farrier Swier Consulting, a specialist multidisciplinary corporate and project advisory group, with expertise in utility reform and market development, the design and application of economic regulation, competitive pricing and public policy development. Shaun has extensive experience in the electricity industry having worked for numerous clients throughout Australia, including governments, regulators and the industry over the Page 18