SLIDE 1 POC PROCEDURES WORKING GROUP (POC-PWG) 14 January 2016

SLIDE 2 AGENDA SLIDE 1.Background 2.What we need to do? 3.How are we going to do it? 4.Process 5.Workshop discussion topics 6.Close and questions

SLIDE 3 1. BACKGROUND On 26 November 2015, the AEMC made a final rule that will open up competition in metering services. On 17 December 2015, the AEMC made a final rule to reduce the barriers to embedded network customers accessing retail market offers. The new arrangements, which will commence on 1 December 2017, have required changes to the National Electricity Rules (NER) and the National Electricity Retail Rules (NERR). The changes to the NER require that AEMO and the IEC amend existing procedures and that AEMO create new procedures.

SLIDE 4 BACKGROUND The final rule determinations for MC and EN require AEMO and the IEC to review and update their procedures in accordance with the following timelines: o By 1 September 2016, amend and publish:  Metrology Procedures  MP and MDP Service Level Procedures  Meter Churn Procedures  MSATS Procedures  NMI Standing Data Schedule  RoLR Procedures  B2B Procedures o By 1 September 2016, establish and publish:  Network Device Procedures  Minimum Services Specification  Emergency Priority Procedures Other documents including registration and accreditation procedures are required by 1 March 2017.

SLIDE 5 BACKGROUND The meter replacement process rule change is at draft determination stage: o May require additional changes to procedures shortly before the commencement of formal consultation o Impact to procedure changes will be considered upon the publication of the AEMC’s final determination Specific review of the objection codes in MSATS: o AEMC customer switching review o COAG Energy Council request to AEMO to review objection codes and MSATS procedures o Competition in metering rule demands review of objection codes, regardless of COAG request AEMO procedure framework design: o Consolidate and clarify o Remove duplication and format consistently o Meet the requirements of the NER o Structured to create flexibility in the future

SLIDE 6 BACKGROUND Procedure Framework

SLIDE 7 2. WHAT WE NEED TO DO? By 22 April 2016, AEMO needs to commence formal consultation on procedures for MC and EN to be published by 1 September 2016 Review objection codes in MSATS Make the procedures technically accurate and compliant with the NER Future input in subsequent stages during the process

SLIDE 8 3. HOW ARE WE GOING TO DO IT? At the December workshop we discussed the format of future workshops Outcomes were: o Smaller, more focused working groups based on themes/topics o AEMO discussion papers supported by AEMO SMEs o Stakeholder input on technical procedures/matters Workshops will not be: o Information / training sessions o Formal consultation (at this stage) o Related to changes beyond MC / EN / MRP (e.g. SMP rule change)

SLIDE 9 4. PROCESS Focused on the matters where AEMO needs further input from stakeholders: o Some changes are straight forward (e.g. Metering Coordinator replacing the Responsible Person) o Input needed on items that are not so clear Flexibility: o Timing restrictions (1 st round consultation by 22 April) o Meter replacement process final determination o May identify topics for further discussion as we go along AEMO and stakeholders will need to be flexible during this process

SLIDE WORKSHOP DISCUSSION TOPICS Session 1 o Identification of type 4 metering  Current type 4  Small customer type 4  Type 4A o Validation and substitution for type 4 o Sample metering o Network device management requirements o Emergency priority requirements o Meter churn

SLIDE WORKSHOP DISCUSSION TOPICS Session 2 o MSATS requirements  Including objection code review o B2B requirements  Including life support Session 3 o Metering business processes The agendas of these and subsequent sessions will evolve over time based on progress and topics that come up in discussion.

SLIDE CLOSE AND QUESTIONS Questions? Next steps: The next workshop is scheduled for 3-4 February 2016 Future workshops are in Industry Calendar Contact: