Credit Limit Procedures - Cash Security Minor Amendment 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.

The Credit Limit Procedures (CLP) establish the methodology by which AEMO determines the prudential settings for each market participant so that the prudential standard is met for the NEM.

AEMO has now completed its consultation on minor updates to the CLP in accordance with NER 3.3.8 and the minor rules consultation procedure in clause 8.9.4 of the National Electricity Rules (NER).

Due to overlapping implementation timeframes with the Shortening the Settlement Cycle (SSC) and Cash Security rule changes in terms of changes to the CLP, the amendments to the CLP for Cash Security have been made to the current version of the CLP (v9.0) and to the updated SSC version of the CLP (v10.0) which completed consultation in December 2025. The amendments to the current version of the CLP for Cash Security will be effective from 1 November 2026 in line with the Cash Security rule change (v9.1), and the amendments to the updated SSC version of the CLP will remain with the same effective date of 11 December 2026 (v10.1).

Scope

The focus of this minor consultation was proposed amendments to the CLP to:

• Implement the National Electricity Amendment (Allowing AEMO to accept cash as credit support) Rule 2025 No. 8 (Cash Security Rule) by reflecting changes to terms and concepts in the National Electricity Rules (NER) under the Cash Security Rule.