National Electricity Rules
According to the National Electricity Rules (Rules) a person wishing to participate in any of the markets or trading activities conducted by NEMMCO must register in one of the categories of Market Participant listed below.
The Rules allow for exemption from registration to be granted by either NEMMCO or the Australian Energy Regulator, depending on the nature of the exemption.
In order to be registered, an applicant must satisfy NEMMCO that it:
- meets any eligibility requirements specified for the category of Registered Participant (applicable to Generators or Market Customers);
- is and will be able to fulfil applicable financial obligations relating to Market Participants; and
- has demonstrated an ability to comply with the Rules.
Generator
Any person who owns, controls or operates a generating system connected to a transmission or distribution network must register as a Generator. To be eligible for registration, a person must:
- with NEMMCO's approval, classify each of its generating units as either a scheduled generating unit (that is, dispatched by NEMMCO) or a non-scheduled generating unit; and
- satisfy NEMMCO that each generating system will be capable of meeting or exceeding its performance standards.
A person must also classify each of its generating units as either a market generating unit (ie settled on-market) or a non-market generating unit. A person may also classify, with NEMMCO's approval, its generating units as an ancillary service generating unit.
A Generator will register in one of six combinations of categories, depending on how they have classified their generating unit:
- Market Scheduled Generator;
- Market Semi-scheduled Generator;
- Market Non-scheduled Generator;
- Non-Market Scheduled Generator;
- Non-Market Semi-scheduled Generator; or
- Non-market Non-scheduled Generator
Generally, generating systems with an aggregate nameplate rating of:
- 30 MW or greater are classified as scheduled or semi-scheduled generating units;
- less than 30 MW are classified as non-scheduled generating units; and
- less than 5 MW have a standing exemption from registration.
Generating systems greater than 30 MW may be classified as non-scheduled if:
- the primary purpose of the generating unit is local use and aggregate sent out generation rarely exceeds 30 MW;
- it is not practicable for the generating unit to participate in central dispatch.
From 31 March 2009 generating systems may be classified as semi-scheduled if the output of the generating unit is intermittent. Transitional arrangements are in place for registration of intermittent generation before then.
A generating unit that has a nameplate rating less than 30 MW may also be exempted by NEMMCO if it exports less than 20 GWh into the grid in a year or extenuating circumstances apply.
Any person who wishes to settle its generation on-market must register as a Market Generator.
A description of the policies on registration and exemptions is in the Generator Registration Guide.
Customer
To be eligible for registration as a Customer, a person must satisfy NEMMCO that:
- the person intends to classify its electricity purchased at a connection point as a first-tier load, second-tier load or market load; or
- the registration is for the purpose of acting as a retailer of last resort.
First and second-tier loads are settled through a retailer and market loads are settled on-market.
Customers register in the categories of First-Tier Customer, Second-Tier Customer or Market Customer depending on how they have classified their loads. Registration as a First-Tier or Second-Tier Customer is optional. A person who wishes to have its load settled on-market must register as a Market Customer.
Market loads may also be classified as scheduled loads or ancillary service loads. This enables customers to submit bids to purchase electricity or provide ancillary services through the central dispatch process, provided they can respond to dispatch instructions issued by NEMMCO.
Network Service Provider
Any person who owns, controls or operates a transmission or distribution network must register as a Network Service Provider.
The Australian Energy Regulator may exempt a person from registering as a Network Service Provider or from the operation of Chapter 5 Network Connection of the Rules.
A Network Service Provider may have a network service dispatched and settled through the market by classifying the service as a market network service and a scheduled network service and registering as a Market Network Service Provider.
Trader
Anyone who wishes to participate in a Settlement Residue Auction (SRA) and is not already registered with NEMMCO as a Market Customer or a Generator, must register with NEMMCO as a Trader.
Reallocator
A Reallocator is a person so registered with NEMMCO to participate in "reallocation transactions" under clause 3.15.11 of the Rules.
Market Participant
A Market Participant is a person who is registered in the categories of Market Generator, Market Customer or Market Network Service Provider.
Traders and Reallocators are also treated as Market Participants for purposes listed in the Rules.
Special Participant
A Special Participant is a System Operator or Distribution System Operator who carries out certain functions under the Rules and must be registered with NEMMCO.
Intending Participant
Anyone intending to participate in the NEM may register with NEMMCO as an Intending Participant. The rights and obligations of Intending Participants are specified by NEMMCO and are available on NEMMCO's website.
For further information regarding the registration process please refer to the related NEMMCO registration guides, or contact the Registration Desk.