The consultation process
The consultation process is now closed. Relevant dates are outlined below.
| Process stage | Date |
|---|---|
| Publication of Procedure Change Proposal | 16 March 2026 |
| Closing date for submissions on Procedure Change Proposal | 16 April 2026 |
| Publication of Procedure Change Report | 21 April 2026 |
| Commencement of amended Procedure | 21 April 2026 |
Procedure change proposal
Electricity System and Market Rules – Clause 2.10
Date of Notice: 16 March 2026
Matter under consultation
AEMO commenced the Procedure Change Process to propose amendments to the WEM Procedure: Settlements (the Procedure) as a result of changes to clauses 2.13.43, 2.13.43A and 9.21.2 of the ESM Rules, made under the Electricity System and Market Amendment (Tranche 9) Rules 2025 (Amending Rules).
The relevant changes came into effect on 1 January 2026, and AEMO was required to undertake all necessary WEM Procedure Changes on or before 1 May 2026 (see clause 1.70.2).
The Amending Rules changed the way in which AEMO was required to distribute Civil Penalty Amounts. Formerly, AEMO distributed Civil Penalty Amounts in accordance with formulae provided under the ESM Rules, but as of 1 January 2026, AEMO must make these distributions in accordance with instructions provided by the Economic Regulation Authority (ERA). The relevant Procedure changes are made under paragraph 6.
Other minor amendments were made to the Procedure to reduce the potential for non-compliance with the ESM Rules. AEMO provided further explanation on the amendments to Civil Penalty Amount distributions and other minor non-editorial changes in section 3 of the Procedure Change Proposal.
AEMO also took the opportunity to make further changes of an editorial nature to improve alignment with AEMO’s modern WEM Procedure templates, improve clarity for Market Participants, and remove duplication with the ESM Rules. Further information on editorial changes were provided in section 4 of the Procedure Change Proposal, and against consultation notes in the marked-up version of the Procedure.
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 on consistency with the SEO was provided in section 2.2 of the Procedure Change Proposal.
Procedure Change Proposal documents
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 does not consider it to be confidential, but will 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.
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
AEMO 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 16 April 2026.
All submissions must be in electronic format (pdf or Microsoft Word) and should use the Procedure Change Submission form.
AEMO is not obliged to consider submissions received after the closing date and time. Any late submissions should explain the reason for delay and the detriment expected if AEMO does not consider the late submission.
Publication
AEMO advised that all submissions will be published on AEMO's website, and that confidential information will not be published, other than as specified above.