AEPC_2026_03 Reserve Capacity Security

The consultation process

The consultation process is outlined below. Dates are indicative only and subject to change.

Procedure change proposal

Electricity System and Market Rules – Clause 2.10

Date of Notice: 30 April 2026

Matter under consultation

AEMO commenced the Procedure Change Process to propose amendments to the WEM Procedure: Reserve Capacity Security as a result of various amendments that have been made to the ESM Rules that have affected the rules related to Reserve Capacity Security. These amendments primarily originated from the Reserve Capacity Mechanism Review, including the requirements to provide replacement Reserve Capacity Security following a drawdown event, and changes to various defined terms.

The amendments include:

• Changing the term “DSM Reserve Capacity Security” to “DSP Reserve Capacity Security”.
• Clarification of processes and documentation required for the provision of Security.
• AEMO’s processes for Transferring Security.
• Clarification of eligibility and timing for returning Reserve Capacity Security.
• The processes for releasing DSP Reserve Capacity Security.

On 6 February 2025 the State Electricity Objective (SEO) replaced the Wholesale Market Objectives under section 3A of the Electricity Industry Act 2004. Following an assessment, AEMO considers the Procedure is consistent with the SEO. Further information is provided in the Procedure Change Proposal below.

Invitation to make submissions

AEMO invited written submissions on this Procedure Change Proposal, including any alternative or additional proposals may improve the Procedure or better meet the State Electricity Objective under section 3A of the Electricity Industry Act 2004.

AEMO requested that respondents identify any parts of their submission that they wished to remain confidential, explaining why. AEMO advised that it may still publish that information if it did not consider it to be confidential, but would consult with the respondent before doing so.

When making a claim for confidentiality, AEMO encouraged respondents to familiarise themselves with Chapter 10 of the Electricity System and Market Rules (ESM Rules), which imposes obligations in respect to the release of documents.

Meetings

AEMO advised that before the closing date for submissions, any person may request a meeting with AEMO to discuss the issues and proposed changes raised in the Procedure Change Proposal, stating why they consider a meeting is necessary or desirable.

AEMO noted that, if appropriate, meetings may be held jointly with other stakeholders. 

Subject to confidentiality restrictions, AEMO generally makes details of matters discussed at meetings available to other stakeholders as part of the final published Procedure Change Report (or earlier, where applicable). 

Closing date and time

Respondents were advised that submissions in response to this Procedure Change Proposal should be sent by email to [email protected], to reach AEMO by 5.00 pm (AWST) on 2 April 2026.

All submissions were required to be in electronic format (pdf or Microsoft Word) using the Procedure Change Submission form.

AEMO was not obliged to consider submissions received after the closing date and time.  Any late submissions should have explained the reason for delay and the detriment expected if AEMO did not consider the late submission.

Publication

All submissions were published on AEMO’s website below. Confidential information was not published, other than as specified above.