Flexible Trading Arrangements

Background

In May 2022, AEMO submitted the rule change proposal for the “Flexible trading arrangements and metering of minor energy flows in the NEM”. The rule change request proposed modifications to the NER and NERR in accordance with the ESB recommendations (as provided in their draft recommendations Post 2025 Market Design Final Advice), for the implementation of:

• Flexible Trader Model 2 (FTM2), which enables end users to establish a private metering arrangement (PMA) for controllable resource(s) within their electrical installation, and to have these resources managed by a separate financially responsible Market Participant (FRMP); and
• Minor energy flow metering, to accommodate connection arrangements not currently considered in the NEM metering framework (principally the inclusion of metering installations within PMAs) by enabling the adoption of non-traditional metering installation types.

The AEMC has progressed this rule change request to a draft determination* titled Unlocking CER Benefits Through Flexible Trading (The Rule Change) on February 29 2024, with a final determination due July 2024. The draft rule proposed an effective date of February 2026.

High Level Implementation Assessment (HLIA)

The purpose of the HLIA is to provide a preliminary view to participants and the AEMC on how the Unlocking CER benefits through flexible trading may be implemented. This is intended to inform participants as they develop their own implementation timelines and impact assessments.

This document is not intended to pre-empt the outcomes of the ongoing Rule Change process, but rather add an additional element of rigour to this process. It is hoped that this document and the accompanying consultation will elicit feedback from participants which the AEMC can use to inform its final determination on Unlocking CER benefits through flexible trading.

Record of activities

Industry engagement

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

Reference Information 

Further information

For more information, please contact NEMReform@aemo.com.au.