Consultation on Settlements Residue Auction Rules - Basslink

Consultation process

Key contact

Email: [email protected]

Matters under consultation

AEMO is consulting on amendments to the Settlements Residue Auction (SRA) Rules as required by NER 3.18.3(d), following the procedure in NER 8.9.3. The proposal relates to the incorporation of the Basslink interconnector into the settlements residue auction and also proposes a simplified calculation methodology for auction expense fees, as detailed in the draft report.

AEMO is using the expedited rules consultation procedure as it considers the proposal is unlikely to have any significant effect on the NEM or activities of registered participants. AEMO also notes that, subject to confirmation by its operator, Basslink’s conversion to a regulated interconnector is expected to take effect on 1 July 2026. To facilitate an auction of Basslink settlements residue distribution units prior to conversion, AEMO’s systems must reflect the changes of the proposal by 1 May 2026. AEMO may, however, decide to reconsider its consultation process after considering any relevant stakeholder submissions.

AEMO’s final determination is to amend the SRA Rules in the form published with its final report, with a proposed effective date of 1 May 2026.

Anyone who considers that AEMO should follow the standard (rather than expedited) consultative procedure for this proposal can submit a request for AEMO to do so to [email protected] by 5:00pm (Melbourne time) on 20 March 2026. A request must include the information in NER 8.9.3(b).

AEMO invites written submissions from interested persons on the draft report and draft SRA Rules amendments to [email protected] by 5:00pm (Melbourne time) on 3 April 2026.

In summary, AEMO is consulting on the following amendments to the SRA Rules:

• establish new unit categories for the Basslink interconnector; and
• amend and simplify the auction expense fee calculation to facilitate initial auction fee calculations for both EnergyConnect and Basslink interconnectors and provide for more equitable cost allocation overall.