Cash Security Guidelines Consultation

Consultation process

Key contact

Email: [email protected]

Matters under consultation

AEMO is implementing the Cash as Credit Support (Cash Security) reform following the Australian Energy Market Commission’s final determination, made on 26 June 2025.

The final rule, effective 1 November 2026, allows NEM Market Participants to provide cash as a form of credit support, up to a limit of $20 million (known as the Cash Security Limit), indexed yearly against CPI.

AEMO has now completed its consultation on the Cash Security Guidelines (Guidelines). This consultation outlined the procedural requirements set by AEMO under clause 3.3.2A of the National Electricity Rules (NER). These requirements specify the terms and conditions that apply to cash security used as credit support within the National Electricity Market (NEM).

Since the publication of the draft Guidelines, AEMO has made minor changes to sections 1.1, 3.2, and Appendix A for better clarity in the purpose and use of the Guidelines.

Scope

The Guidelines cover the following:

• How AEMO accepts, holds, applies, and returns cash security in accordance with the NER.
• The conditions under which cash security may be accepted or rejected, including details about the application and methodology for determining the Cash Security Limit (CSL).
• The treatment of interest earned or incurred on cash security.
• The procedures that Market Participants must follow to submit, adjust, or request the return of cash security.