Energy and Climate Change Ministerial Council

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Orderly Exit Management Framework Draft Exposure Bill and Rule - June 2024

Publication date

On 24 November 2023, Energy Ministers agreed to an opt-in Orderly Exit Management (OEM) Framework for the National Electricity Market. The OEM Framework will allow governments to better manage the early exit of thermal generators, seeking alternative options to replace the capacity of the thermal generator or temporarily seek an extension to the closing date of the thermal generators to maintain energy reliability and security.  

The OEM Framework will act as a transition backup, while investment in clean technologies and transmission network continues as fast as possible. This will ensure the energy market transitions in an orderly manner.

Energy Ministers are now seeking comment on the Exposure Draft Bill and Rule for the OEM Framework. The design of the Draft Bill and Rule was informed by earlier consultation (see below).

Purpose of the Framework

The Framework establishes a clear and transparent process and gives governments a new tool, if they opt in, to manage the orderly retirement of thermal generators. It means they can identify supply risks early and take immediate action. This will help to ensure generators only leave the market when replacement capacity is available, so our electricity market remains reliable and secure.  

How it will work

Jurisdictions need to opt in for the Framework to apply in their jurisdiction.

The Framework will be set out in the National Energy Law and Rules. If it is activated, it will follow a staged process of independent assessment, exploration of options, and engagement with generators.

The diagram below provides an overview of how the Framework will work.

Diagram showing how the OEM Framework will work.

See a text alternative of how the Framework will work.

Exposure Draft Bill and Rules consultation

The Exposure Draft Bill and Rules, along with a Bill and Rule Guide and a Response to Stakeholder Submissions, were released on 26 June 2024. The Exposure Draft Bill and Rules have been informed by submissions in response to the initial Consultation Paper (available below).

Feedback is now sought on the Exposure Draft Bill and Rules to inform the final Bill and Rules. Consultation on the Exposure Bill and Rules closes at 5 pm AEST on Wednesday 24 July 2024.

Please provide feedback using the linked submission template. 

Please email your responses to the email address included in the submission template. 

Responses to this consultation may be made public. If you wish for the submission to remain confidential, please indicate this in your response. Please note that all submissions, including confidential submissions, will be shared with state, territory and commonwealth representatives via the Jurisdictional Working Group that is supporting the development of the OEM Framework. 

Please note that all jurisdictions are bound by applicable privacy and freedom of information legislation, which may affect the confidentiality of your submission.

Documents

Attachment Size
Submission template (XLSX) 25 KB
Exposure Draft Bill (PDF) 260 KB
Exposure Draft Rules (DOCX) 157 KB
Bill and Rule Guide, Explanatory Memoranda (DOCX) 300 KB
Response to Stakeholder Submissions (DOCX) 632 KB

Next steps

The following are the key milestones for the finalisation of the Framework.

Indicative timing Milestone
26 June 2024 Exposure Draft Bill and Rules released for consultation
5 pm AEST, 24 July 2024 Period for submissions on Exposure Draft Bill and Rules closes
By end 2024 Bill to be considered by South Australian Parliament

Initial consultation – December 2023 to February 2024

The OEM Framework Consultation Paper was released for public consultation on 15 December 2023, with the formal period for submissions closing on 2 February 2024. Feedback was sought to inform the final Framework design. 

Over 20 submissions were received, and all submissions not marked confidential are accessible below. Feedback received will inform the final design of the OEM Framework, including the legislative package needed to enact the Framework.

The initial Consultation Paper and a supporting report from Frontier Economics is available below.

Industry briefing

An industry briefing on the initial Consultation Paper was held on Wednesday 17 January 2024. Presentation material is available below.

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Categories

Energy Ministers priority issue

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