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.