National Electricity Code - Chapter - Sorted By Class ID and Grouped by Chapter

08-Dec-98

Code ClauseParaClass IDCivil Descriptive HeadingReason

ProvPenalty

Chapter2

2.012.01.02(f)UnclassifiedCode participants to pay NEMMCO prescribed Substantive obligation imposed by clause 2.11.

fees

2.022.02.01(a)UnclassifiedMust register as GeneratorProvision already covered specifically in NEL for penalty

($100,000); can be taken to Tribunal for order as an

unclassified breach (in Code)

2.022.02.01(c)UnclassifiedNEMMCO can give exemptions in accordance Is a reviewable decision, so failure by NEMMCO to adhere to

with guidelinesguidelines best dealt with by prescribed mechanisms rather

than Code breach.

2.022.02.02(b)NEMMCO NEMMCO must classify unit as a scheduled What is needed is for the participant, through a Tribunal

Breachgenerating unitorder, to be able to get NEMMCO to make a classification.

Failure could significantly harm a potential participant.

2.022.02.02(c)Class CParticipant must comply with NEMMCO Failure to do so could obviously have profound effects on the

conditions on approval as scheduled operation of the market to the detriment of many other

generating unitparticipants so the most stringent sanctions are required here

in terms of fines and Tribunal orders.

2.022.02.02(f)UnclassifiedScheduled Generator must operate as per This is a general obligation to comply with Ch 3. Breaches of

co-ordinated central dispatch process in Ch clause of Chapter 3 best dealt with as breach of the

3particular clause.

2.022.02.02(g)UnclassifiedScheduled Generator must notify NEMMCO of This obligation appears to be present in the Ch 3 provisions

availability of each scheduled generating dealing specifically with dispatch and hence can be left as an

unit unclassified provision of general application

2.022.02.03(b)NEMMCO NEMMCO must approve >30 MW generator What a participant requires here is an order forcing NEMMCO to

Breachclassification under certain conditions act. Failing that, a participant could suffer real harm but

it is unlikely others will.

2.022.02.03(d)Class CParticipant must comply with any terms and There may be the potential for a generator of this size, even

conditions NEMMCO attaches to non-scheduled if exempted, to disturb market and system operations

classification of >30 MW generatorsignificantly if conditions of operation are ignored, which

could incur substantial loss to other participants.

Accordingly, a large fine, both daily and in gross, are

required as deterrents, particularly seeing that a defaulting

participant is already enjoying the benefit of an exemption

from scheduling.

2.022.02.03(g)UnclassifiedNon-scheduled generating units not to This provision is self-regulating - if the units are not

participate in central dispatchclassified they will not participate in the market as NEMMCO

will not dispatch them.

2.022.02.04(c)Class CMarket Generator must sell all energy This is a fundamental obligation of a generator under the Code

through the spot market and accept NEMMCO and its observance must be supported by the capacity for the

paymentsmaximum fine for default and the capacity to make a wide range

of Tribunal orders. Failure here will clearly significantly

disadvantage other market participants and warrants high

sanction provisions

2.022.02.04(d)Class CMarket Generator must purchase all energy This is a fundamental obligation of a generator under the Code

from the spot market and pay NEMMCO and its observance must be supported by the capacity for the

maximum fine for default and the capacity to make a wide range

of Tribunal orders.Failure here will clearly significantly

disadvantage other market participants and warrants high

sanction provisions.

Code ClauseParaClass IDCivil Descriptive HeadingReason

ProvPenalty

2.032.03.01(c)UnclassifiedPerson must not purchase electricity from Provision already covered by sanctions in the NEL. This

the market unless registered with NEMMCOprovision just extends the detail by specifying appropriate

classification of connection points as, effectively, a NEMMCO

requirement for registration. Failure to classify will result

in non-registration and therefore any market activity will be

a default under the NEL and attract sanctions there.

2.032.03.01(e)UnclassifiedMust satisfy requirements of relevant Potential breach better left to be dealt with under

participating jurisdictionrequirements of the relevant participating jurisdiction.

2.032.03.02(c)Class C1st tier customer must not buy from market If the customer attempted to do so it would disrupt the market

for 1st tier load and adversely affect other participants, but it is difficult

to imagine such a practice proliferating so as to justify

large fines. However, a desist order from the Tribunal may be

required, justifying the selection of option C.

2.032.03.03(c)Class C2nd tier customer must not buy from market If the customer attempted to do so it would disrupt the market

for 2nd tier load and adversely affect other participants, but it is difficult

to imagine such a practice proliferating so as to justify

large fines. However, a desist order from the Tribunal may be

required, justifying the selection of option C.

2.032.03.04(c)Class CMarket Customer must purchase all This is a fundamental obligation of a participant under the

electricity from the spot market and pay Code and its observance must be supported by the capacity for

NEMMCOmaximum fines and a wide range of Tribunal orders. Its impact

on individual participants affected by the load could be

significant as well as its widespread potential to effect all

participants through the damaging effect on market integrity

such a breach may have.

2.032.03.04(e)NEMMCO NEMMCO must classify load as scheduled load What is needed is for the participant, through a Tribunal

Breachunder certain conditionsorder, to be able to get NEMMCO to make a classification.

Failure could significantly harm a potential participant.

2.032.03.04(g)UnclassifiedMarket Customer must comply with dispatch Covered by clause 4.9.8 (a).

instructions

2.032.03.04(h)Class A$20,000.00Local Retailer must classify connection NEMMCO must be able to separately identify load supplied

point to another part of power systemthrough a retailer/distributor's system to another

distribution system so that settlement data can be accurately

collected and dealt with. This is obvious and there is little

incentive on a retailer to do otherwise so a fine to $20,000

would seem to be sufficient.

2.042.04.01(b)UnclassifiedRequirement to register as Market Express sanctions contained in NEL in relation to registration

Participant with NEMMCO with NEMMCO, so leave unclassified.

2.042.04.01(c)-(d)UnclassifiedMarket Participants can participate if Breach of prudential requirements and Code provisions

comply with Code requirementsgenerally best dealt with in accordance with classification

given to particular Code provision breached by Market

Participant. These clauses imposing "general" obligations

therefore left unclassified.

2.052.05.00(a)UnclassifiedRegistration as Network Service Provider Dealt with by specific sanctions in NEL and therefore left

compulsoryunclassified in this context.

Code ClauseParaClass IDCivil Descriptive HeadingReason

ProvPenalty

2.062.06.00(b)UnclassifiedSpecial Participant must register with Dealt with in NEL so left unclassified in this context.

NEMMCO

2.082.08.01(a)UnclassifiedCode Participant must not act in a category Breach of this provision could involve many different actions

without compliance with Code and lawand consequences both under the NEL and the Code, and should

be dealt with as a breach of the NEL or the specific

provisions of the Code rather than of this general provision.

2.092.09.01(b)NEMMCO NEMMCO must advise applicant within 5 daysThis is a time requirement on a NEMMCO reply to an

Breachapplication. A general obligation to comply with the Code.

2.092.09.02(a)-(b)NEMMCO NEMMCO must admit applicant after 15 daysThis is a time requirement on a NEMMCO reply to an

Breachapplication. Market operation relies on compliance.

2.092.09.03(b)NEMMCO NEMMCO must grant registration exemption This is a matter clearly left to NEMMCO's discretion.

Breachunder certain criteria

2.092.09.03(c)NEMMCO NEMMCO must approve an intermediary under This is a matter clearly left to NEMMCO's discretion.

Breachcertain criteria

2.092.09.03(d)(1)NEMMCO NEMMCO must register intermediaryThis is a matter clearly left to NEMMCO's discretion.

Breach

2.102.10.01(b)UnclassifiedCannot notify NEMMCO of de-registration if Best handled as a breach of relevant provisions of the NEL and

required to be registered by NEL therefore left unclassified in this context.

2.102.10.01(d)UnclassifiedRejection of application to de-registerIs a reviewable decision and best handled through the review

mechanism. Therefore has been left unclassified.

2.102.10.01(e)NEMMCO NEMMCO must notify an application for This clause requires NEMMCO to give notice of a pending

Breachcessationcessation of supply. Market efficiency and Participant

confidence relies on compliance.

2.102.10.02(a)Class CMarket Participant must cease tradingIf a Participant has elected to cease trading a particular

load it must do so in accordance with the notice otherwise the

data gathering and settlement processes of NEMMCO and the

interests of other Participants may be badly affected.

Accordingly, higher penalty and sanction provisions should be

provided.

Code ClauseParaClass IDCivil Descriptive HeadingReason

ProvPenalty

2.112.11.01(a)-(b)NEMMCO NEMMCO must develop Participant feesIf NEMMCO does not develop a fee structure it will cease to

Breachexist and the market will fail. The obvious necessity to

pursue this function in the mutual interests of all ensures it

will be performed.

2.112.11.01(d)NEMMCO NEMMCO must consider other fee structuresThis refers to a factor that NEMMCO must take into account

Breachwhen considering fees. The requirement to consult with NECA

and others in the process will ensure this occurs.

2.112.11.01(e)NEMMCO NEMMCO must publish fees and methodsTransparency to Participants in NEMMCO's funding

Breachdeterminations is obviously essential. Market transparency

degraded by non-compliance.

2.112.11.02(c)Class CParticipant must pay fees in a statementThe requirement on a Participant to pay fees in accordance

with a NEMMCO statement, without dispute, is fundamental to

NEMMCO's funding and hence the operation of the market.

Greater penalties and available sanctions are therefore called

for in the case of default.

2.112.11.03(a)NEMMCO NEMMCO must publish a budgetThe requirement to consult with NECA and others in the process

Breach will ensure a budget is published.

2.112.11.03(b)NEMMCO NEMMCO must separately identify certain These are easily identified elements of the NEMMCO budget.

Breachitems in budgetGiven the required process, NEMMCO will be disciplined to

disclose these matters.