Baker McKenzie has advised the Australian Energy Market Commission (AEMC) on a recent Rule Change, providing drafting to amend the National Electricity Rules, the National Gas Rules and the National Energy Retail Rules to bring them into line with the recently updated National Energy Objectives. The updated objectives make the achievement of State, Territory and Commonwealth emissions reduction targets a key goal of regulated activity in the National Electricity Market (NEM), gas markets and the retail energy market.
Baker McKenzie energy partner, Aylin Cunsolo states: "In an exciting first, the Australian Energy Market Commission has officially incorporated emissions reduction considerations into the national energy rules, solidifying a significant regulatory shift towards net zero. The change seeks to harmonize and align the electricity and gas rules with recent amendments to the national energy objectives, so that market bodies can consider emissions reduction in their planning and decision-making."
Aylin further commented: "The change will aid electricity networks in providing investment clarity and certainty as the energy sector transitions to net zero."
The Rule Change potentially unlocks more transmission and distribution projects able to achieve emissions reductions than would have previously been approved by the AER.
Aylin was assisted by Baker McKenzie Senior Associate, Odette Adams, and associate, Lewis Wolfe.
The new rules came into effect immediately, on 1 February 2024.