The National Energy Rules (NER) amendment introduced in July 2021 was designed to promote more efficient investment in, and shared use of, transmission infrastructure.
The key purpose of the amendment is to allow multiple facilities to connect to the same transmission network asset with individual connection and metering points. This is required to support many NER obligations and processes including market settlement, losses and compliance of performance standards.
NER Amendment
On 8 July 2021, the Australian Energy Market Commission (AEMC) released its final rule determination to amend the National Energy Rules (NER) in relation to Dedicated Connection Assets (DCAs).
This NER amendment introduced the concept of a designated network asset (DNA), which is a material extension to the transmission network.
Under the new rule, new transmission lines with a total route length in excess of 30km are adopted as part of the shared transmission network and deemed to be a Designated Network Asset (DNA) under the NER.
One of the key features is the classification of the DNA as a transmission network asset. This enables multiple parties to access to those transmission network services and take up capability through individual Transmission Network Connections Points (TNCP).
The Rules describe a series of requirements for DNA owners including the requirement to publish information about each of its DNA in an access policy and/or on the owner’s website.
NER Reference
5.2A.8(b1) | NER DNA Information requirement |
| Description of DNA including routes, tenure arrangements, main components and any limitations to increasing the capacity of the DNA | |
| Limitations relating to the development, operation, upgrade to existing assets comprising the DNA, or increase in the capacity of the designated network asset, including environmental, planning or other similar limitations | |
| Key terms which are proposed to apply to the provision of DNA services | |
| A pricing methodology that specifies how prices for DNA services will be calculated and indications of likely charges for connecting to the DNA | |
| The process by which an applicant may seek DNA Services, including timeframes that facilitate reasonable negotiations for access | |
| Advice on the availability of commercial arbitration under rule 5.5 of the NER, in the case of dispute. | |
5.2A.8(n) | NER DNA Information requirement |
The current transmission capacity of the DNA. The capacity of the generating plants and loads (or existing connections) currently connected to the DNA. |