AEMC transition on 5 minute electricity rule too long: Bandt

Greens climate and energy spokesperson Adam Bandt MP says the initial position by the Australian Energy Market Commission (AEMC) to support supports a move to a 5-minute settlement rule for the electricity market is a positive step towards fixing the broken electricity market, but the transition period is too long.

The AEMC published a directions paper yesterday as part of its consideration of a rule change request to reduce the time interval for settlement in the wholesale electricity market from 30 minutes to 5 minutes.

Most energy experts and the Australian Greens have been advocating the rule change to enable more battery storage, fast response renewables and demand management to bid into the market. The move would also reduce the 'gaming' of the system by the incumbent fossil fuel generators, which is driving up power prices.

On Monday, a Greens-led Senate inquiry called for the change.

Last week a Greens motion, moved by Jeremy Buckingham MLC, backing the shift to a five minute settlement rule recently passed the NSW Parliament Upper House. 

Quotes attributable to Adam Bandt: 

“The national electricity market is broken and the 'five minute rule' is a good first step towards fixing the problem. But we need to get on with it now and a three year transition is too long.”

“This change is long overdue. The process has been glacially slow and it has been holding back more storage coming online. Another 3 year wait is not acceptable."

“We must guard against complacency. The incumbent fossil fuel generators will fight this rule because they want to keeping gaming a system that is set up to allow them to profit at the public's expense. They will want to stretch a transition for as long as possible.”

“There are no silver bullets to the challenge of the energy transition. The vital missing ingredient is a comprehensive national plan from the federal government, including extending the Renewable Energy Target which Labor and Liberal slashed.

“Just this week, Labor refused to back the 5 minute reform in their dissenting report to a Senate inquiry on electricity resilience. Now that the AEMC supports this change, the Labor party needs to join The Greens and back this critical reform to the energy system.”