Shortening the Settlement Cycle (SSC)

Background

AEMO is implementing the SSC reform following the Australian Energy Market Commission’s final determination, made on 12 December 2024. The change was made in response to Globird Energy’s rule change request to shorten the settlement cycle.

The changes reduce prudential collateral held by AEMO to cover accrued liabilities (typically of retailers) in the NEM, i.e. unpaid settlement amounts. Lowering working capital requirements for small retailers in particular, would lower barriers to market entry and support increased investment in service innovation and more competition. This should benefit consumers through access to more choice and better service offerings.

Scope

The final rule shortens the national electricity market (NEM) settlement cycle to nine business days following the end of a billing period and introduces a new revision 20 business days following the end of the billing period.

The final rule will commence at the start of billing week 33 on 9 August 2026. 

High-Level Implementation Assessment (HLIA)  

AEMO has published a High-Level Implementation Assessment of the SSC reform as part of the implementation process under the NEM Reform Program. It provided an indicative view to participants on how the SSC draft rule may be implemented by AEMO. It outlined the proposed system, data exchange, process and operational changes and the indicative timeline that would likely be required to give effect to the draft SSC rule. This HLIA also provided a general assessment of what these changes may mean for NEM participants.

Procedure changes

Several of AEMO’s procedures, guidelines and other documents need to be created or changed to implement the SSC rule. For more information about impacted documents, refer to the Procedure Impacts Review in the latest High Level Implementation Assessment. Any changes to the list of procedure updates and reporting on the progress of consultation processes, will be reported via AEMO’s Electricity Wholesale Consultative Forum and Electricity Retail Consultative Forum.

Industry engagement

This initiative forms part of NEM Reform Program and market participants can get involved by visiting:

Implementation toolbox

The Implementation Toolbox is a central location for useful resources to help participants understand and prepare for the changes associated with the rule implementation.

Educational Resources

Videos – Cash Dashboard Guide Video Series

The Cash Dashboard app on the Markets Portal is a new feature being introduced as part of the Shortening the Settlement Cycle (SSC) project, enabling participants to submit and manage cash instructions for prudential requirements. This replaces the current email-based process.

The videos below provide step-by-step guidance on using the Cash Dashboard. Captions are available for each video and can be turned on as needed, and time markers and chapters have been included in the video descriptions to support easy navigation between sections.

Note: Additional functionality will be introduced as part of the Cash Security project. These features will be covered in a separate set of guide videos to be released in Q3 2026.

Further information

For more information, please contact [email protected].