Australian Energy Market Commission DRAFT RULE DETERMINATION RULE NATIONAL ELECTRICITY AMENDMENT (PARTICIPANT DEROGATION – FINANCEABILITY OF ISP PROJECTS (TRANSGRID)) RULE 2021 PROPONENT TransGrid 4 FEBRUARY 2021 Australian Energy Draft rule determination Market Commission Participant derogation – financeability of ISP projects 4 February 2021 INQUIRIES Australian Energy Market Commission GPO Box 2603 Sydney NSW 2000 E
[email protected] T (02) 8296 7800 Reference: ERC0320 CITATION AEMC, Participant derogation – financeability of ISP projects (TransGrid), Draft rule determination, 4 February 2021 ABOUT THE AEMC The AEMC reports to the Council of Australian Governments (COAG) through the COAG Energy Council. We have two functions. We make and amend the national electricity, gas and energy retail rules and conduct independent reviews for the COAG Energy Council. This work is copyright. The Copyright Act 1968 permits fair dealing for study, research, news reporting, criticism and review. Selected passages, tables or diagrams may be reproduced for such purposes provided acknowledgement of the source is included. Australian Energy Draft rule determination Market Commission Participant derogation – financeability of ISP projects 4 February 2021 SUMMARY 1 The Commission’s draft determination 2 On 1 October 2020, the Australian Energy Market Commission (AEMC or Commission) received a rule change request from TransGrid. It sought an exception to the applicability of the rules in relation to the financeability of its share of actionable Integrated System Plan (ISP) projects in the form of a participant derogation, meaning that the exception from the rules will only apply to TransGrid. Financeability refers to the willingness of investors to extend equity or debt to a business to finance its activities.