The Australian Competition and Consumer Commission today granted interim authorisation to the National Electricity Market 1 Stage 1 (NEM1 Stage 1) arrangements.
"NEM1 will harmonise the respective wholesale electricity markets of New South Wales and Victoria and allow inter-State trade on a commercial basis," ACCC Chairman, Professor Allan Fels, said today. "The ACCC sees these arrangements as bringing the participating jurisdictions closer to implementation of the National Electricity Market which is to be regulated by the National Electricity Code." The NEM 1 arrangements are to be introduced in two stages:
NEM1 Stage 1, to which the ACCC has given interim authorisation involves:
- the progressive introduction of inter-State trade in electricity;
- system security under the control of TransGrid in New South Wales and the Australian Capital Territory and VPX in Victoria;
- and trading of energy from the Snowy scheme in accordance with the existing entitlement arrangements.
NEM1 Stage 2 will be brought to the ACCC for authorisation in April 1997 for implementation in July 1997. Stage 2 will involve:
- full inter-State trade in electricity;
- system security jointly administered by TransGrid and the VPX; and
- trading of energy from the Snowy being managed by one entity.
"The ACCC is working to fulfil its statutory obligations regarding the authorisation of the National Electricity Code. A draft Determination will be published in a few months with a final determination to follow thereafter. It is envisaged that transitional arrangements for NEM1 Stage 1 and 2 will be short lived, and that early 1998 will see the full implementation of the National Electricity Code. Even so, the ACCC will be publishing its findings with regard to the NEM1 Stage 1 arrangements in due course."
Further Information Ms Lin Enright, Director, Public Relations, (06) 264 2808