Five Minute Settlement and Global Settlement
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 Global Settlement (GS) framework for the demand side of the wholesale electricity market.
The full commencement of 5MS, and the soft start of GS, both begin on 1 July 2021. This aligns the development of systems and procedures for both changes, reducing implementation costs. GS will fully commence on 6 February 2022. Please visit the Global settlement and market reconciliation web page on AEMC's website for further details.
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.
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:
- 5MS & GS Program Timelines (1 MB, pdf)
Industry engagement overview
Engagement between AEMO and industry will be crucial to successful execution of the 5MS Program. The following diagram outlines AEMO’s approach to engagement (forums and groups specific to the 5MS Program are highlighted in yellow).
Detailed information on each workstream and the 5MS forums and groups is available by navigating to separate pages (see section on the left).
For Further Information
Please direct any queries regarding the Five-Minute Settlement (5MS) Working Groups to 5ms@aemo.com.au.