Five Minute Settlement and Global Settlement
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NOTICE: On 9 July, the Australian Energy Market Commission (AEMC) announced its decision to defer the Five-Minute Settlement (5MS) and Global Settlement (GS) commencement dates by three months. AEMO’s delivery of the 5MS and GS technical IT components will continue as planned. This will allow market participants to progress implementation preparations and system testing. Following this technical phase, the program will focus on industry readiness, including industry testing and market trials, prior to the 5MS and GS commencement dates. |
The Australian Energy Market Operator (AEMO) is working with industry to implement changes arising from an Australian Energy Market Commission (AEMC) Final Determination to implement Five-Minute Settlement (5MS) in the National Electricity Market (NEM). On 6 December 2018 the AEMC made a final rule that requires a move to a Five-Minute Settlement (5MS) and a Global Settlement (GS) framework for the demand side of the wholesale electricity market starting on 1 July 2021 and 6 February 2022 respectively. However, on 9 July 2020, the AEMC announced their decision to defer the commencement of both rules by three months due to COVID-19.
The full commencement of 5MS, and the soft start of GS, will now begin on 1 October 2021. This aligns the development of systems and procedures for both changes, reducing implementation costs. GS will fully commence on 1 May 2022. The new 5MS and GS commencement dates, along with the original dates, are reflected in the table below
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ASPECT OF RULE |
ORIGINAL DATE |
NEW DATE |
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Commencement of 5MS |
1 July 2021 |
1 October 2021 |
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Commencement of “soft start” GS |
1 July 2021 |
1 October 2021 |
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Commencement of financial settlement of GS |
6 February 2022 |
1 May 2022 |
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Compliance date for all new and replacement metering installations (other than excluded metering installations) to be configured to record and provide 5-minute data |
1 December 2022 |
1 December 2022 |
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AEMO required to publish UFE data report |
1 July 2021 |
1 October 2021 |
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AEMO required to publish UFE report on unaccounted for energy trends |
1 March 2022 |
1 June 2022 |
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AEMO required to publish UFE reporting guidelines |
1 December 2022 |
1 March 2023 |
5MS workstreams
To implement the 5MS and the GS rule changes AEMO has established the 5MS Program, comprising the following workstreams:
- Procedures – to define the required changes to market procedures.
- Systems – to design, develop, test, and implement changes to AEMO’s market systems.
- Readiness – to coordinate, assist and prepare AEMO and the industry for the transition.
For further information about the program please visit the Program Information and Fact Sheets page.
Industry engagement
Engagement between AEMO and industry is crucial to the 5MS Program’s success, which is why each 5MS workstream is aligned to an industry working group. To support this activity, AEMO holds monthly question and answer (Q&A) sessions and focus groups to provide its members with an opportunity to further discuss and explore key topics. To learn more about the 5MS Program’s working groups, refer to the links in the diagram below.
There are also a range of activities to keep all stakeholders involved in and informed about the program. These activities include:
- Information sessions: aimed at providing user friendly updates on the 5MS Program progress.
- Newsletters: designed to keep all stakeholders up to date with the latest 5MS Program news.
Want to know more?
Join our mailing list to receive frequent updates and invitations to our information sessions by emailing us.
Program timeline
For detailed information on the latest 5MS and GS timelines and Level 1 and Level 2 milestones, their descriptions, and key dates for Procedures, Systems and Readiness workstreams leading out until 2022, download the following document: