National Electricity (Victoria) (VicGrid) Regulations 2025

These Regulations (National Electricity (Victoria) (VicGrid) Regulations 2025, S.R. No. 113/2025) operate chiefly by amending the National Electricity Rules as they have force in Victoria, to insert VicGrid into many roles and processes that the Rules otherwise allocate to AEMO or to Transmission Network Service Providers. The Regulations commence 1 November 2025 (regulation 3) and are made under s 12A of the National Electricity (Victoria) Act 2005 (regulation 2). The stated objectives are to make those Rule modifications consequent on the National Electricity (Victoria) Amendment (VicGrid Stage 2 Reform) Act 2025, to permit CSIRO to receive protected information, to prescribe caps on VicGrid civil monetary liability and on the civil liability of VicGrid officers and employees for relevant events, and to confer on AEMO a function of providing services and support to VicGrid (regulation 1).

Mechanically, the instrument does not create extensive new standalone statutory duties for third parties: it modifies the Rules by substitution and insertion, treating VicGrid as if it were AEMO or a Network Service Provider in many specified provisions (see, for example, clauses incorporated in Parts 2 and 4 of these Regulations). Examples of mechanical change include: treating VicGrid as a Registered Participant for the purpose of Participant fees (clause 5), treating AEMO's NTP function fees applicable to VicGrid as Participant fees recoverable from VicGrid (clause 6), and inserting VicGrid into market and planning provisions, including Rule 3.7E (register of DER information) and clause 5.12.2 (Transmission Annual Planning Report) (clauses 8 and 25). The Regulations also give VicGrid the ability to prepare and amend Contestability Guidelines and to determine whether an augmentation is contestable (clauses 59 and 63). They set out procurement oversight interactions with the AER, including a staged assessment and reporting regime for VicGrid procurements of contestable augmentations (clauses 66 and related subclauses 8.11.8A to 8.11.8F as inserted).

Version No. 001

National Electricity (Victoria) (VicGrid) Regulations 2025

S.R. No. 113/2025

Version as at
1 November 2025

TABLE OF PROVISIONS

Regulation Page

Part 1—Preliminary 1

1 Objectives 1

2 Authorising provision 2

3 Commencement 2

4 Definitions 2

Part 2—Modifications to the National Electricity Rules 3

Division 1—Chapter 2 of the Rules (Registered Participants and Registration) 3

5 Development of Participant fee structure 3

6 Budgeted revenue requirements 3

Division 2—Chapter 3 of the Rules (Market Rules) 3

7 Payment of amounts to be recovered from Co‑ordinating Network Service Providers—Consultation with VicGrid 3

8 Register of DER information 4

9 Generation information page 4

10 Ancillary Services 4

11 Standing data 5

12 Auctions and eligible persons 6

13 Auction proceeds and auction expense fees 6

Division 3—Chapter 4 of the Rules (Power System Security) 7

14 Nomenclature Standards 7

Division 4—Chapter 5 of the Rules (Network Connection Access, Planning and Expansion) 7

15 Purpose and Application—Part B (Network Connection and Access) 7

16 Principles—Part B (Network Connection and Access) 8

17 Obligations of network service providers 9

18 Response to connection enquiry 9

19 Application for connection to declared shared network 9

20 Right of entry and inspection 9

21 Right of testing 10

22 Routine testing of protection equipment 10

23 Testing by Registered Participants of their own plant requiring changes to normal operation 10

24 Definitions for the purposes of Part D of Chapter 5 10

25 Transmission Annual Planning Report 11

26 Joint planning obligations of Transmission Network Service Providers and Distribution Network Service Providers 11

27 Joint planning in relation to retirement or de‑ratings of network assets forming part of the Declared Shared Network 12

28 Regulatory investment test for transmission procedures 12

29 Regulatory investment test for distribution procedures 12

30 Disputes in relation to application of regulatory investment test for distribution 12

31 SENE Design and Costing Study—Interpretation 12

32 AEMO's and VicGrid's obligations to publish information and guidelines and provide advice 12

33 REZ design reports 13

Division 5—Chapter 6A of the Rules (Economic Regulation of Transmission Services) 14

34 Application of Chapter 6A to VicGrid and declared transmission system operators 14

35 Submission of proposal, pricing methodology and information 14

36 Development of Transmission Ring-Fencing Guidelines 15

37 Co-ordinating Network Service Provider for a region 15

38 Contents of Revenue Proposals—Information and matters relating to capital expenditure 15

39 Application of this Chapter to VicGrid etc 16

40 Exclusions, qualifications and modifications 16

Division 6—Chapter 8 of the Rules (Administrative Functions) 19

41 Application and guiding principles 19

42 The Dispute Resolution Adviser 19

43 Dispute management systems of Registered Participants, VicGrid and AEMO 19

44 Stage 1 - dispute resolution through Registered Participants' DMS 20

45 Stage 2 - dispute resolution process 20

46 Effect of resolution 21

47 Confidentiality 21

48 Indemnity to AER, AEMC, AEMO and VicGrid 22

49 Application of rules to CDR data 22

50 Monitoring 22

51 Reporting requirements and monitoring standards for Registered Participants, VicGrid and AEMO 22

52 Constitution of the Reliability Panel 24

53 Reliability Panel review process 24

54 Determination of protected events 24

55 General provisions relating to the Rules consultation procedures 25

56 Application of Part H (Augmentations) 25

57 Object of Part H (Augmentations) 25

58 Definitions in Part H (Augmentations) 25

59 VicGrid Contestability Guidelines 27

60 Planning criteria 27

61 Construction of augmentation that is not a contestable augmentation 28

62 Treatment of non-contestable augmentations below capital cost threshold 28

63 Contestable augmentations 29

64 Construction and operation of contestable augmentation 31

65 Funded augmentations that are not subject to the tender process 32

66 AER assessment of VicGrid procurement of contestable augmentations 32

67 Contractual requirements and principles 37

68 Annual planning review 37

69 Development of methodology and publication of values of customer reliability 37

70 Development of methodology and publication of values 38

71 Early termination and opting out of trial projects 38

72 Risk allocation provisions of Schedule 8.11 disapplied 38

Division 7—Chapter 9 of the Rules (Jurisdictional Derogations and Transitional Arrangements) 38

73 Fault levels 38

74 Transmission Network Pricing 38

Division 8—Chapter 10 of the Rules (Glossary) 39

75 Definitions in Glossary 39

Division 9—Chapter 11 of the Rules (Savings and Transitional Rules) 43

76 Calculation and notification of Participant fees 43

77 Participant fees in the pre-adjusted non-locational component 43

78 Amendment of initial pricing methodology by VicGrid 44

Part 3—Administration 46

Division 1—Protected information 46

79 Disclosure of protected information 46

Division 2—Immunities 46

80 Immunity—general 46

Part 4—Other matters 50

81 AEMO function to assist VicGrid 50

82 Application of section 44AAEC of the Competition and Consumer Act 2010 of the Commonwealth 50

═════════════

Endnotes 51

1 General information 51

2 Table of Amendments 53

3 Explanatory details 54

Version No. 001

National Electricity (Victoria) (VicGrid) Regulations 2025

S.R. No. 113/2025

Version as at
1 November 2025

Part 1—Preliminary

1 Objectives

The objectives of these Regulations are—

(a) to make modifications to the National Electricity Rules as a consequence of the enactment of the National Electricity (Victoria) Amendment (VicGrid Stage 2 Reform) Act 2025; and

(b) to prescribe the Commonwealth Scientific and Industrial Research Organisation as a body that is permitted to receive protected information (as defined under the National Electricity (Victoria) Law) held by VicGrid; and

(c) to prescribe the maximum amount of VicGrid's civil monetary liability and the maximum amount of civil monetary liability of VicGrid's officers and employees for the purposes of section 55E(2) of the Act; and

(d) to confer on AEMO a function of providing services and other support to VicGrid in relation to the conferral of functions and powers on VicGrid by or under—

(i) the Act; or

(ii) the National Electricity (Victoria) Law; or

(iii) the National Electricity (Victoria) Regulations; or

(iv) the National Electricity Rules.

2 Authorising provision

These Regulations are made under section 12A of the National Electricity (Victoria) Act 2005.

3 Commencement

These Regulations come into operation on 1 November 2025.

4 Definitions

In these Regulations—

Rules means the National Electricity Rules;

the Act means the National Electricity (Victoria) Act 2005.

Part 2—Modifications to the National Electricity Rules

Division 1—Chapter 2 of the Rules (Registered Participants and Registration)

5 Development of Participant fee structure

Clause 2.11.1(c)(5A) of the Rules has the force of law in Victoria as if for "including AEMO" there were substituted "including VicGrid".

6 Budgeted revenue requirements

Clause 2.11.3 of the Rules has the force of law in Victoria as if for paragraph (d) there were substituted—

"(d) AEMO's NTP function fees applicable to VicGrid as a Co-ordinating Network Service Provider under clause 2.11.3(ba) are to be treated as Participant fees recoverable from VicGrid and, for that purpose, VicGrid is to be treated as a Registered Participant.".

Division 2—Chapter 3 of the Rules (Market Rules)

7 Payment of amounts to be recovered from Co‑ordinating Network Service Providers—Consultation with VicGrid

Clause 3.6.5 of the Rules has the force of law in Victoria as if in paragraphs (j) and (m)(1), the reference to Transmission Network Service Providers is to be read as including a reference to VicGrid.".

8 Register of DER information

Rule 3.7E of the Rules has the force of law in Victoria as if after paragraph (r) there were inserted—

"Interpretation

(s) In this rule—

(1) a reference to a Network Service Provider is to be read as including a reference to VicGrid; and

(2) a reference to network is to be read as including a reference to the declared shared network.".

9 Generation information page

Rule 3.7F of the Rules has the force of law in Victoria as if after paragraph (g) there were inserted—

"(h) For the purposes of paragraph (g), a reference to a Transmission Network Service Provider is to be read as including a reference to VicGrid in respect of key connection information relating to the declared shared network.".

10 Ancillary Services

(1) Clause 3.11.1 of the Rules has the force of law in Victoria as if after paragraph (c) there were inserted—

"(c1) For the purposes of paragraph (c)(2) and (3), a reference to a Transmission Network Service Providers is to be read as including a reference to VicGrid.".

(2) Clause 3.11.3 of the Rules has the force of law in Victoria as if after paragraph (c) there were inserted—

"(d) For the purposes of this clause, a reference to a Transmission Network Service Provider is to be read as including a reference to VicGrid.".

(3) Clause 3.11.5 of the Rules has the force of law in Victoria as if after paragraph (b) there were inserted—

"(b1) For the purposes of paragraph (b)(3), a reference to a Network Service Provider is to be read as including a reference to VicGrid.".

11 Standing data

Clause 3.13.3 of the Rules has the force of law in Victoria as if—

(a) after paragraph (f) there were inserted—

"(f1) For the purposes of paragraph (f), a reference to Network Service Providers is to be read as including a reference to VicGrid."; and

(b) after paragraph (g) there were inserted—

"(g1) For the purposes of paragraph (g), a reference to Network Service Providers is to be read as including a reference to VicGrid."; and

"(i1) For the purposes of paragraph (i), a reference to Network Service Providers is to be read as including a reference to VicGrid."; and

(d) for paragraph (q) there were substituted—

"(q) In relation to the declared transmission system of an adoptive jurisdiction:

(1) VicGrid must maintain the register referred to in paragraph (d);

(2) a declared transmission system operator must provide VicGrid with information reasonably required by VicGrid for maintaining the register; and

(3) VicGrid must, without delay, notify and provide AEMO with details of any additions or changes to the register VicGrid must maintain under subparagraph (1).".

12 Auctions and eligible persons

Clause 3.18.2 of the Rules has the force of law in Victoria as if after paragraph (g) there were inserted—

"(g1) For the purposes of paragraph (g)(2), the reference to Transmission Network Service Providers is to be read as including a reference to VicGrid.".

13 Auction proceeds and auction expense fees

Clause 3.18.4 of the Rules has the force of law in Victoria as if after paragraph (f) there were inserted—

"(g) In this clause, a reference to a Network Service Provider is to be read as including a reference to VicGrid.".

Division 3—Chapter 4 of the Rules (Power System Security)

14 Nomenclature Standards

Rule 4.12 of the Rules has the force of law in Victoria as if, in paragraph (e), after "Registered Participant" there were inserted "or VicGrid".

Division 4—Chapter 5 of the Rules (Network Connection Access, Planning and Expansion)

15 Purpose and Application—Part B (Network Connection and Access)

(1) Clause 5.1A.1(d) of the Rules has the force of law in Victoria as if in paragraph (d)—

(a) after "Part B" there were inserted "and the provisions of Part C specified in paragraph (d1)"; and

(b) in subparagraph (2), for "AEMO" there were substituted "VicGrid".

(2) Clause 5.1A.1 of the Rules has the force of law in Victoria as if after paragraph (d) there were inserted—

"(d1) The provisions of Part C specified for the purposes of paragraph (d) are:

(1) rule 5.6;

(2) clause 5.7.3;

(3) clause 5.7.3A;

(4) clause 5.7.5 (other than clause 5.7.5(f));

(5) rule 5.8;

(6) clause 5.9.1; and

(7) clause 5.9.2.".

(3) Clause 5.1A.1(e) of the Rules has the force of law in Victoria as if—

(a) for "AEMO" there were substituted "VicGrid"; and

(b) after subparagraph (9) there were inserted—

"(9A) clause 5.14.4;".

(4) Clause 5.1A.1(f) of the Rules has the force of law in Victoria as if—

(a) after subparagraph (5) there were inserted—

"(5A) rule 5.18A;"; and

(b) for "AEMO" there were substituted "VicGrid".

(5) Clause 5.1A.1(g) of the Rules has the force of law in Victoria as if—

(a) after subparagraph (2) there were inserted—

"(2A) clause 5.7.4;"; and

(b) after subparagraph (4) there were inserted—

"(4A) clause 5.9.5;".

16 Principles—Part B (Network Connection and Access)

(1) Clause 5.1A.2(b) of the Rules has the force of law in Victoria as if for "between a Network Service Provider and each Connection Applicant" there were substituted "between either a Network Service Provider or VicGrid and each Connection Applicant".

(2) Clause 5.1A.2(e)(2) of the Rules has the force of law in Victoria as if after "AEMO," there were inserted ", and between Registered Participants and VicGrid, and between VicGrid and AEMO,".

17 Obligations of network service providers

Clause 5.2.3 of the Rules has the force of law in Victoria as if after paragraph (c) there were inserted—

"(ca) For the purposes of paragraph (c), the reference to the relevant Network Service Provider is to be read as including a reference to VicGrid.".

18 Response to connection enquiry

(1) Clause 5.3.3(b2) of the Rules has the force of law in Victoria as if after "Registered Participant" there were inserted ", VicGrid".

(2) Clause 5.3.3(b4) of the Rules has the force of law in Victoria as if for "and AEMO" there were substituted ", VicGrid and AEMO".

19 Application for connection to declared shared network

Rule 5.3B of the Rules has the force of law in Victoria as if—

(a) in paragraph (a), for "AEMO" (where twice occurring) there were substituted "VicGrid"; and

(b) in paragraph (b), for "AEMO" there were substituted "VicGrid".

20 Right of entry and inspection

Clause 5.7.1 of the Rules has the force of law in Victoria as if after paragraph (l) there were inserted—

"(m) For the purposes of this clause, a reference to a Registered Participant is to be read as including a reference to VicGrid.".

21 Right of testing

Clause 5.7.2 of the Rules has the force of law in Victoria as if after paragraph (k) there were inserted—

"(l) For the purposes of this clause, a reference to a Registered Participant is to be read as including a reference to VicGrid.".

22 Routine testing of protection equipment

Clause 5.7.4(a3) of the Rules has the force of law in Victoria as if after "AEMO" there were inserted "and VicGrid".

23 Testing by Registered Participants of their own plant requiring changes to normal operation

(1) Clause 5.7.5(c) of the Rules has the force of law in Victoria as if for "The Network Service Provider" there were substituted "Subject to paragraph (c1), the Network Service Provider".

(2) Clause 5.7.5 of the Rules has the force of law in Victoria as if after paragraph (c) there were inserted—

"(c1) Paragraph (c)(3) and (4) do not apply to a review conducted by VicGrid.".

24 Definitions for the purposes of Part D of Chapter 5

Clause 5.10.2 of the Rules has the force of law in Victoria as if for the definition of RIT-T project there were substituted—

"RIT-T project:

(a) means:

(1) a project the purpose of which is to address an identified need identified by a Transmission Network Service Provider;

(2) a joint planning project if:

(i) at least one potential credible option to address the identified need includes investment in a network or non-network option on a transmission network (other than dual function assets) with an estimated capital cost greater than the cost threshold that applies under clause 5.16.3(a)(2); or

(ii) the Network Service Providers affected by the joint planning project have agreed that the regulatory investment test for transmission should be applied to the project; or

(3) an actionable ISP project; and

(b) does not include a project for an augmentation specified in the Victorian transmission plan (within the meaning of section 51 of the National Electricity (Victoria) Act 2005 of Victoria).".

25 Transmission Annual Planning Report

Clause 5.12.2(d) of the Rules has the force of law in Victoria as if for "AEMO" (where twice occurring) there were substituted "VicGrid".

26 Joint planning obligations of Transmission Network Service Providers and Distribution Network Service Providers

Clause 5.14.1(b) of the Rules has the force of law in Victoria as if for "AEMO" (where twice occurring) there were substituted "VicGrid".

27 Joint planning in relation to retirement or de‑ratings of network assets forming part of the Declared Shared Network

Rule 5.14A of the Rules has the force of law in Victoria as if, in paragraphs (a) and (b), for "AEMO" there were substituted "VicGrid".

28 Regulatory investment test for transmission procedures

Clause 5.16.4(z6) and (z7) of the Rules has the force of law in Victoria as if for "AEMO" there were substituted "VicGrid".

29 Regulatory investment test for distribution procedures

Clause 5.17.4(a)(1), (h) and (k) of the Rules has the force of law in Victoria as if after "Registered Participants" there were inserted ", VicGrid".

30 Disputes in relation to application of regulatory investment test for distribution

Clause 5.17.5(a) of the Rules has the force of law in Victoria as if after "Registered Participants" there were inserted ", VicGrid".

31 SENE Design and Costing Study—Interpretation

Clause 5.19.2 has the force of law in Victoria as if in paragraph (a), after "dual function asset" there were inserted "or VicGrid".

32 AEMO's and VicGrid's obligations to publish information and guidelines and provide advice

(1) Rule 5.21 of the Rules has the force of law in Victoria as if in the heading to the rule, after "AEMO's" there were inserted "and VicGrid's".

(2) Rule 5.21(d) of the Rules has the force of law in Victoria as if—

(i) for "AEMO" (where secondly occurring) there were substituted "VicGrid"; and

(ii) in subparagraph (1), after "Transmission Network Service Provider" there were inserted "or VicGrid"; and

(iii) in subparagraph (4), after "AEMO" (where first occurring) there were inserted "or between VicGrid and AEMO".

(3) Rule 5.21(e) of the Rules has the force of law in Victoria as if after "Transmission Network Service Provider" (where twice occurring) there were inserted "or VicGrid".

(4) Rule 5.21(f) of the Rules has the force of law in Victoria as if after "Transmission Network Service Provider" there were inserted "or VicGrid".

33 REZ design reports

Clause 5.24.1 of the Rules has the force of law in Victoria as if—

(a) in paragraph (b), for "For" there were substituted "Subject to paragraph (b1), for"; and

(b) after paragraph (b) there were inserted—

"(b1) VicGrid is not required to prepare or publish a REZ design report for a REZ if a REZ scheme declaration made for or with respect to that REZ is in force.

(b2) In paragraph (b1), REZ scheme declaration has the same meaning as in the National Electricity (Victoria) Act 2005 of Victoria.".

Division 5—Chapter 6A of the Rules (Economic Regulation of Transmission Services)

34 Application of Chapter 6A to VicGrid and declared transmission system operators

Clause 6A.1.6 of the Rules has the force of law in Victoria as if—

(a) in the heading to the clause, for "AEMO" there were substituted "VicGrid"; and

(b) in paragraphs (a) and (b), for "AEMO" there were substituted "VicGrid".

35 Submission of proposal, pricing methodology and information

Clause 6A.10.1 of the Rules has the force of law in Victoria as if after paragraph (j) there were inserted—

"(k) No later than 10 business days after the day on which a declared transmission system operator submits to the AER a Revenue Proposal relating to the prescribed transmission services that are provided by means of, or in connection with, a transmission system:

(1) that is owned, controlled or operated by that declared transmission system operator; and

(2) to which an augmentation specified in a notice given to the declared transmission system operator under clause S6A.1.1B relates,

the declared transmission system operator must submit to VicGrid information that demonstrates that the operator has complied with clause S6A.1.1A.".

36 Development of Transmission Ring-Fencing Guidelines

Clause 6A.21.2(d) of the Rules has the force of law in Victoria as if after "AEMO" there were inserted ", VicGrid".

37 Co-ordinating Network Service Provider for a region

Clause 6A.29.1(b) of the Rules has the force of law in Victoria as if for "AEMO" there were substituted "VicGrid".

38 Contents of Revenue Proposals—Information and matters relating to capital expenditure

Schedule 6A.1 of the Rules has the force of law in Victoria as if after clause S6A.1.1 there were inserted—

"S6A.1.1A Additional forecast capital expenditure requirement for declared transmission system operator

Without limiting clause S6A.1.1(1), the declared transmission system operator must include, as part of the forecast of the required capital expenditure that complies with the requirements of clause 6A.6.7, the forecast capital expenditure for augmentations that are:

(1) not contestable augmentations (within the meaning of clause 8.11.3); and

(2) specified in a notice given to the declared transmission system operator under clause S6A.1.1B.

S6A.1.1B Notice specifying non-contestable augmentations

VicGrid may, for the purposes of clause S6A.1.1A, by written notice given to the declared transmission system operator, specify augmentations that are not contestable augmentations (within the meaning of clause 8.11.3).".

39 Application of this Chapter to VicGrid etc

(1) Schedule 6A.4 of the Rules has the force of law in Victoria as if in the heading to the Schedule, for "AEMO" there were substituted "VicGrid".

(2) Clause S6A.4.1 of Schedule 6A.4 of the Rules has the force of law in Victoria as if—

(a) in the heading to the clause, for "AEMO" there were substituted "VicGrid"; and

(b) in paragraph (a)—

(i) for "AEMO" there were substituted "VicGrid"; and

(ii) after "prescribed shared transmission services" there were inserted "and VicGrid's expenditures in carrying out declared network functions are to be recovered through fees charged as a Transmission Network Service Provider.".

40 Exclusions, qualifications and modifications

(1) Clause S6A.4.2 of Schedule 6A.4 of the Rules has the force of law in Victoria as if—

(a) in paragraph (c)(1), for "AEMO" there were substituted "VicGrid"; and

(b) in paragraph (c)(2)—

(i) for "AEMO" there were substituted "VicGrid"; and

(ii) for "AEMO's" there were substituted "VicGrid's"; and

(i) for "In" there were substituted "Subject to paragraph (ca), in"; and

(ii) for "AEMO" there were substituted "VicGrid"; and

(d) in paragraph (c)(4)—

(i) for "AEMO's" (where twice occurring) there were substituted "VicGrid's"; and

(ii) for "AEMO" (where twice occurring) there were substituted "VicGrid"; and

(e) in paragraph (c)(6), for "AEMO" there were substituted "VicGrid"; and

(f) in paragraph (c)(7), for "AEMO" there were substituted "VicGrid"; and

(g) in paragraph (c)(8)—

(i) for "AEMO's" there were substituted "VicGrid's"; and

(ii) for "AEMO" there were substituted "VicGrid"; and

(h) in paragraph (c)(10), for "AEMO" (where twice occurring) there were substituted "VicGrid"; and

(i) in paragraph (c)(11), for "AEMO" (wherever occurring) there were substituted "VicGrid"; and

(j) in paragraph (d), for "AEMO" (wherever occurring) there were substituted "VicGrid"; and

(k) in paragraph (f)—

(i) for "AEMO" (wherever occurring) there were substituted "VicGrid"; and

(ii) for "AEMO's" (where twice occurring) there were substituted "VicGrid's"; and

(l) in paragraph (g), for "AEMO" there were substituted "VicGrid"; and

(m) in paragraph (h)—

(i) for "AEMO's" there were substituted "VicGrid's"; and

(ii) for "AEMO" there were substituted "VicGrid"; and

(n) in paragraph (j), for "AEMO" there were substituted "VicGrid"; and

(o) in paragraph (k)1 and 3 to 7—

(i) for "AEMO" (wherever occurring) there were substituted "VicGrid"; and

(ii) for "AEMO's" (wherever occurring) there were substituted "VicGrid's"; and

(p) in paragraphs (m) and (n), for "AEMO" there were substituted "VicGrid".

(2) Clause S6A.4.2 of Schedule 6A.4 of the Rules has the force of law in Victoria as if after paragraph (c) there were inserted—

"(ca) Clause S6A.4.2(c)(3) does not apply during the period commencing on the day on which the National Electricity (Victoria) (VicGrid) Regulations 2025 of Victoria come into operation and ending on the first anniversary of that day.".

Division 6—Chapter 8 of the Rules (Administrative Functions)

41 Application and guiding principles

Clause 8.2.1 of the Rules has the force of law in Victoria as if—

(a) in paragraph (a1), after "AEMO" there were inserted ", VicGrid"; and

(b) in paragraph (h)(5B), for "AEMO" there were substituted "VicGrid".

42 The Dispute Resolution Adviser

Clause 8.2.2 of the Rules has the force of law in Victoria as if—

(a) in paragraph (b)(4), after "Registered Participant" (where twice occurring) there were inserted ", VicGrid"; and

(b) in paragraph (d), after "Registered Participants" (where twice occurring) there were inserted ", VicGrid".

43 Dispute management systems of Registered Participants, VicGrid and AEMO

Clause 8.2.3 of the Rules has the force of law in Victoria as if—

(a) in the heading to the clause, after "Registered Participants" there were inserted ", VicGrid"; and

(b) in paragraph (a), after "Registered Participant" there were inserted ", VicGrid"; and

(i) before "or AEMO" (wherever occurring) there were inserted ", VicGrid"; and

(ii) in subparagraph (3), for "another Registered Participant" there were substituted "a requesting entity"; and

(iii) in subparagraph (4), for "other Registered Participants" there were substituted "requesting entities"; and

(d) in paragraph (c)—

(i) before "or AEMO" there were inserted ", VicGrid"; and

(ii) for "another Registered Participant" there were substituted "a requesting entity"; and

(e) after paragraph (c) there were inserted—

"(d) In this clause:

requesting entity means:

(1) in the case of a request to a Registered Participant, another Registered Participant or VicGrid;

(2) in the case of a request to VicGrid, a Registered Participant; or

(3) in the case of a request to AEMO, a Registered Participant or VicGrid.".

44 Stage 1 - dispute resolution through Registered Participants' DMS

Clause 8.2.4(a) of the Rules has the force of law in Victoria as if before "or AEMO" there were inserted ", VicGrid".

45 Stage 2 - dispute resolution process

Clause 8.2.5(e) of the Rules has the force of law in Victoria as if before "AEMO" there were inserted "VicGrid,".

46 Effect of resolution

Clause 8.2.9(c) of the Rules has the force of law in Victoria as if before "or AEMO" there were inserted ", VicGrid".

47 Confidentiality

Clause 8.6.1 of the Rules has the force of law in Victoria as if—

(a) for paragraph (d) there were substituted—

"(d) The officers of a Transmission Network Service Provider or VicGrid participating in transmission service pricing must not be involved in or associated with competitive electricity trading activities of:

(1) in the case of a Transmission Network Service Provider, any other Registered Participant; or

(2) in the case of VicGrid, a Registered Participant.

Note

This paragraph is classified as a tier 1 civil penalty provision under the National Electricity (South Australia) Regulations. (See clause 6(1) and Schedule 1 of the National Electricity (South Australia) Regulations.)"; and

(b) after paragraph (e) there were inserted—

"(f) For the purposes of paragraph (e), a reference to a Transmission Network Service Provider is to be read as including a reference to VicGrid.".

48 Indemnity to AER, AEMC, AEMO and VicGrid

Clause 8.6.5 of the Rules has the force of law in Victoria as if—

(a) in the heading to the clause, for "and AEMO" there were substituted ", AEMO and VicGrid"; and

(b) for "and AEMO" there were substituted ", AEMO and VicGrid"; and

49 Application of rules to CDR data

Rule 8.6A of the Rules has the force of law in Victoria as if after "AEMO" there were inserted ", VicGrid".

50 Monitoring

Clause 8.7.1(b)(1) and (c)(3) of the Rules have the force of law in Victoria as if before "and AEMO" there were inserted ", VicGrid".

51 Reporting requirements and monitoring standards for Registered Participants, VicGrid and AEMO

Clause 8.7.2 of the Rules has the force of law in Victoria as if—

(a) in the heading to the clause, after "Registered Participants" there were inserted ", VicGrid"; and

(b) after paragraph (a)(1) there were inserted—

"(1A) reporting requirements for VicGrid in relation to matters relevant to the Rules;";

"(3A) procedures and standards applicable to VicGrid relating to information and data received by it in relation to matters relevant to the Rules; and";

(d) in paragraph (a)(5), after "Registered Participants" there were inserted ", VicGrid"; and

(e) in paragraphs (b)(1) and (2) and (c), after "AEMO" there were inserted ", VicGrid"; and

(f) in paragraph (e), after "Registered Participant" (where twice occurring) there were inserted ", VicGrid"; and

(g) in paragraph (f)—

(i) for "neither a Registered Participant nor AEMO must" there were substituted "a Registered Participant, VicGrid or AEMO must not"; and

(ii) after "that Registered Participant" there were inserted ", VicGrid"; and

(h) in paragraph (g)—

(i) before "or AEMO" (where first occurring) there were inserted ", VicGrid"; and

(ii) for "the relevant Registered Participants and/or AEMO (as the case may be)" there were substituted "one or more of the following: a relevant Registered Participant, VicGrid and AEMO"; and

(iii) for "and (to the extent relevant) AEMO must pay such costs" there were inserted ", VicGrid or AEMO must pay any such costs"; and

(i) in paragraph (h), for "the relevant Registered Participants and/or AEMO (as the case may be)" there were substituted "one or more of the following: a relevant Registered Participant, VicGrid and AEMO".

52 Constitution of the Reliability Panel

Clause 8.8.2 of the Rules has the force of law in Victoria as if after paragraph (h) there were inserted—

"(i) For the purposes of this clause, a reference to a Transmission Network Service Provider is to be read as including a reference to VicGrid.".

53 Reliability Panel review process

Clause 8.8.3 of the Rules has the force of law in Victoria as if—

(a) in paragraph (d), after "Registered Participants" there were inserted "and VicGrid"; and

(b) in paragraph (h), after "AEMO" there were inserted ", VicGrid".

54 Determination of protected events

Clause 8.8.4(c) of the Rules has the force of law in Victoria as if after "AEMO" (where secondly occurring) there were inserted ", VicGrid".

55 General provisions relating to the Rules consultation procedures

Clause 8.9.1 of the Rules has the force of law in Victoria as if after paragraph (h) there were inserted—

"(h1) For the purposes this clause, a reference to a Transmission Network Service Provider is to be read as including a reference to VicGrid.".

56 Application of Part H (Augmentations)

Clause 8.11.1 of the Rules has the force of law in Victoria as if for "AEMO" there were substituted "VicGrid".

57 Object of Part H (Augmentations)

Clause 8.11.2(5) of the Rules has the force of law in Victoria as if for "AEMO's" there were substituted "VicGrid's".

58 Definitions in Part H (Augmentations)

Clause 8.11.3 of the Rules has the force of law in Victoria as if—

(a) in the definition of augmentation direction, for "AEMO" there were substituted "VicGrid"; and

(b) for the definition of relevant limit there were substituted—

"relevant limit means:

(a) for the following financial years:

(1) the financial year beginning on 1 July 2025; and

(2) the financial year beginning on 1 July 2026,

$20 million; and

(b) for any subsequent financial year, the amount calculated as follows:

)

where:

RL = the relevant limit for that financial year;

PRL = the relevant limit for the previous financial year;

CPIa = is the Consumer Price Index: All Groups Index Number Melbourne published by the Australian Bureau of Statistics for the quarter ending 31 March of the previous financial year;

CPIb = is the Consumer Price Index: All Groups Index Number Melbourne published by the Australian Bureau of Statistics in respect of the quarter ending on 31 March of the financial year before the previous financial year."; and

(c) in paragraphs (a) and (b) of the definition of separable augmentation, for "AEMO" there were substituted "VicGrid"; and

(d) the following definition were inserted in alphabetical order—

"Contestability Guidelines means the guidelines prepared under clause 8.11.3A(a), as amended from time to time under clause 8.11.3A(b).".

59 VicGrid Contestability Guidelines

Rule 8.11 of the Rules has the force of law in Victoria as if after clause 8.11.3 there were inserted—

"8.11.3A Contestability Guidelines

(a) VicGrid may prepare guidelines for or with respect to the matters that VicGrid must take into account in determining whether an augmentation is a contestable augmentation.

(b) VicGrid may amend the Contestability Guidelines.

(c) Subject to paragraph (e), VicGrid must prepare or amend the Contestability Guidelines in accordance with the Rules consultation procedures.

(d) VicGrid must publish on its website the Contestability Guidelines as amended from time to time.

(e) Paragraph (c) does not apply to the first Contestability Guidelines prepared under paragraph (a).".

60 Planning criteria

Clause 8.11.4 of the Rules has the force of law in Victoria as if—

(a) in paragraphs (a) and (b)(1) and (2), for "AEMO" there were substituted "VicGrid"; and

(b) in paragraph (b)(4), for "AEMO's" there were substituted "VicGrid's".

61 Construction of augmentation that is not a contestable augmentation

Clause 8.11.5 of the Rules has the force of law in Victoria as if—

(a) in paragraph (a)—

(i) for "AEMO's" there were substituted "VicGrid's"; and

(ii) for "AEMO" (where twice occurring) there were substituted "VicGrid"; and

(b) in paragraph (b), for "AEMO" (wherever occurring) there were substituted "VicGrid".

62 Treatment of non-contestable augmentations below capital cost threshold

Rule 8.11 of the Rules has the force of law in Victoria as if after clause 8.11.5 there were inserted—

"8.11.5A Certain non-contestable augmentations below capital cost threshold authorised for purposes of section 50F of the NEL

An augmentation is authorised for the purposes of section 50F(1)(c) of the NEL if:

(1) the augmentation is not a contestable augmentation;

(2) the augmentation is the identified need which is technically and economically feasible and the estimated capital cost of that augmentation is less than the estimated capital cost provided for under clause 5.16.3(a)(2);

(3) details of the augmentation have been provided to VicGrid (as part of a list or otherwise) by the declared transmission system operator for the purpose of enabling VicGrid to prepare a Transmission Annual Planning Report; and

Note

See also clause 8.11.8B(a) and (b).".

65 Funded augmentations that are not subject to the tender process

Clause 8.11.8 of the Rules has the force of law in Victoria as if—

(a) in paragraph (a), for "AEMO" there were substituted "VicGrid"; and

(b) in paragraphs (b) and (c)(1), for "AEMO" (where twice occurring) there were substituted "VicGrid"; and

66 AER assessment of VicGrid procurement of contestable augmentations

Rule 8.11 of the Rules has the force of law in Victoria as if after clause 8.11.8 there were inserted—

"8.11.8A AER assessment of VicGrid procurements of contestable augmentations

(a) The AER may assess whether the process adopted by VicGrid for the procurement of the construction of a contestable augmentation will achieve a competitive outcome.

(b) The AER must conduct an assessment under paragraph (a) in accordance with the guidelines prepared under clause 8.11.8F(a), as amended from time to time under clause 8.11.8F(b).

(1) the processes adopted by VicGrid;

(2) the governance, decision-making and probity arrangements put in place by VicGrid for the procurement; and

(3) any other matter that the AER considers relevant.

(d) For the purposes of conducting an assessment under paragraph (a), the AER may make a request to VicGrid to attend any meeting held by VicGrid as part of the procurement process for the construction of a particular contestable augmentation for the purpose of observing the conduct of the meeting.

(e) VicGrid must not unreasonably refuse a request under paragraph (d).

8.11.8B AER must prepare and give draft assessment report to VicGrid

(a) The AER must, within the specified period:

(1) prepare a draft report of the AER's assessment under clause 8.11.8A (a draft assessment report); and

(2) give the draft assessment report to VicGrid.

(b) For the purposes of paragraph (a), the specified period is 40 business days after VicGrid gives the AER the applicable tender evaluation report in accordance with clause 8.11.7(f1).

(1) must set out the AER's findings;

(2) must state whether it was reasonably satisfied that the process adopted by VicGrid for the procurement of the contestable augmentation was genuine and appropriate in achieving a competitive outcome; and

(3) may make recommendations in relation to future procurements by VicGrid of the construction of contestable augmentations.

(d) VicGrid may make submissions to the AER regarding the report no later than 20 business days of receiving the draft assessment report.

(e) In this clause, tender evaluation report means a report prepared under clause 8.11.7(f1).

8.11.8C AER must publish final assessment report

(a) The AER must:

(1) consider any submission VicGrid makes under clause 8.11.8B(d) regarding a draft assessment report provided to VicGrid under clause 8.11.8B(a)(2); and

(2) no later than 60 business days after providing the draft assessment report to VicGrid, prepare, and subject to paragraph (c), publish its final assessment report.

Note

In relation to the publication of a final assessment report, see also section 44AAF of the Competition and Consumer Act 2010 of the Commonwealth and section 18 and Division 6 of Part 3 of the NEL.

(b) In a final assessment report the AER:

(1) must set out the AER's findings;

(3) may make recommendations in relation to future procurements by VicGrid of the construction of contestable augmentations.

(c) The AER may decide not to publish part of a final assessment report if satisfied it is not appropriate to publish that part, taking into account the effect of publishing the part on future procurement processes for the construction of contestable augmentations.

8.11.8D AER actions under clauses 8.11.8A to 8.11.8C

(a) A specified action of the AER in relation to the process adopted by VicGrid for the procurement of the construction of a contestable augmentation does not affect the validity of the procurement of construction of the contestable augmentation.

(b) In this clause, specified action of the AER means:

(1) the conduct of an assessment under clause 8.11.8A;

(2) the preparation of a draft assessment report under clause 8.11.8B; or

(3) the preparation and publication of a final assessment report under clause 8.11.8C.

8.11.8E VicGrid to give any document and information the AER reasonably requires

(a) The AER may, for the purpose of exercising a power under clause 8.11.8A, 8.11.8B or 8.11.8C request VicGrid to give the AER any document or information in VicGrid's possession, power, custody or control that relates to the process adopted by VicGrid for the procurement of the construction of a contestable augmentation.

(b) VicGrid must accede to a request under paragraph (a) as soon as practicable and without undue delay.

8.11.8F AER guidelines for assessments of VicGrid procurements of contestable augmentations

(a) The AER must prepare and publish guidelines for the purposes of assessments it conducts under clause 8.11.8A, 8.11.8B or 8.11.8C (AER procurement assessment guidelines).

(b) The AER may amend the AER procurement assessment guidelines.

(c) The AER must prepare or amend the AER procurement assessment guidelines in accordance with the Rules consultation procedures.

(d) In addition, before preparing or amending the AER procurement assessment guidelines, the AER must consult VicGrid.

(e) The AER must publish the AER procurement assessment guidelines as amended from time to time.".

67 Contractual requirements and principles

Clause 8.11.9 of the Rules has the force of law in Victoria as if—

(a) in paragraphs (b) and (c)(2), for "AEMO's" there were substituted "VicGrid's"; and

(b) in paragraph (c)(1), for "AEMO" there were substituted "VicGrid".

68 Annual planning review

Clause 8.11.10 of the Rules has the force of law in Victoria as if for "AEMO" there were substituted "VicGrid".

69 Development of methodology and publication of values of customer reliability

Rule 8.12(h) of the Rules has the force of law in Victoria as if after subparagraph (3) there were inserted—

"(3A) VicGrid;".

70 Development of methodology and publication of values

Rule 8.13(g) of the Rules has the force of law in Victoria as if after subparagraph (2) there were inserted—

"(2A) VicGrid;".

71 Early termination and opting out of trial projects

Clause 8.18.2(a)(2) of the Rules has the force of law in Victoria as if before "or AEMO" there were inserted ", VicGrid".

72 Risk allocation provisions of Schedule 8.11 disapplied

Schedule 8.11 of the Rules has the force of law in Victoria as if clauses S8.11.1 and S8.11.3(a)(1) were omitted.

Division 7—Chapter 9 of the Rules (Jurisdictional Derogations and Transitional Arrangements)

73 Fault levels

Rule 9.3A of the Rules has the force of law in Victoria as if for "AEMO" there were substituted "VicGrid".

74 Transmission Network Pricing

Clause 9.8.4(b) of the Rules has the force of law in Victoria as if for "AEMO" there were substituted "VicGrid".

Division 8—Chapter 10 of the Rules (Glossary)

75 Definitions in Glossary

Chapter 10 of the Rules has the force of law in Victoria as if—

(a) in paragraph (b) of the definition of auction amounts, before "Network Service Providers" there were inserted "VicGrid or"; and

(b) in the definition of confidential information—

(i) for "or AEMO" (where twice occurring) there were substituted ", AEMO or VicGrid"; and

(ii) after "by AEMO," there were inserted "VicGrid,"; and

(c) in the definition of connection point, after "Network Service Provider(s)" there were inserted "or VicGrid"; and

(d) in the definition of considered project—

(i) in paragraph (a)(1) and (2), before "the Network Service Provider" there were inserted "VicGrid or"; and

(ii) in paragraph (a)(3), before "the Network Service Provider" there were inserted "VicGrid's or"; and

(iii) in paragraph (a)(4), before "the Network Service Provider" there were inserted "VicGrid or"; and

(e) in the definition of Co-ordinating Network Service Provider, for "A Transmission Network Service Provider" there were substituted "VicGrid or a Transmission Network Service Provider"; and

(f) in the definition of dispute management system, before "and AEMO" there were inserted ", VicGrid"; and

(g) in the definition of DMS Contact, before "or AEMO" there were inserted ", VicGrid"; and

(h) for the definition of early works there were substituted—

"early works

In the case of a Transmission Network Service Provider, activities undertaken by a Transmission Network Service Provider in respect of an actionable ISP project:

(a) prior to the construction of the preferred option; and

(b) which:

(1) improve the accuracy of cost estimates for that project; or

(2) facilitate that project being delivered within the timeframes specified by the most recent Integrated System Plan.

In the case of VicGrid, works undertaken by VicGrid in respect of an augmentation to the declared transmission system carried out before the commencement of the construction of the augmentation to:

(a) improve the accuracy of cost estimates for that project; or

(b) facilitate that project being delivered within a reasonable timeframe as determined by VicGrid."; and

(i) in the definition of funded augmentation, for "the Transmission Network Service Provider" there were substituted "a Transmission Network Service Provider or VicGrid"; and

(j) in the definition of identified need, after "Network Service Providers" there were inserted "or VicGrid,"; and

(k) in paragraph (b) of the definition of independent person, after "AEMO" there were inserted "or VicGrid"; and

(l) in the definition of inertia service payment—

(i) after "a Transmission Network Service Provider" there were inserted "or VicGrid"; and

(ii) in paragraph (a), after "the Transmission Network Service Provider" there were inserted "or VicGrid"; and

(m) in the definition of maximum allowed revenue, for "AEMO" there were substituted "VicGrid"; and

(n) in paragraph (b) of the definition of maximum continuous current, after "the Network Service Provider" there were inserted "or VicGrid"; and

(o) in the definition of network alternative support payment, after "a Transmission Network Service Provider" there were inserted "or VicGrid"; and

(p) in the definition of network option, after "a Network Service Provider" there were inserted or "or VicGrid"; and

(q) in the definition of network support agreement, after "a Network Service Provider" there were inserted "or VicGrid"; and

(r) in paragraphs (a) and (c) of the definition of NMAS (non-market ancillary service), after "Transmission Network Service Providers" there were inserted "or VicGrid"; and

(s) in paragraph (e) of the definition of Registered Participant, after "AEMO" there were inserted ", VicGrid"; and

(t) in paragraph (c) of the definition of regulatory control period, for "AEMO" there were substituted "VicGrid"; and

(u) in paragraph (g)(4) of the definition of releasable user guide, after "Network Service Provider" there were inserted "(being either VicGrid or the relevant declared transmission system operator)"; and

(v) in the definition of Rules bodies, after "AEMO" there were inserted ", VicGrid"; and

(w) in the definition of statement of opportunities, after "Transmission Network Service Providers" there were inserted ", VicGrid"; and

(x) in paragraph (a) of the definition of system security network support payment, after "a Transmission Network Service Provider" there were inserted "or VicGrid"; and

(y) in the definition of system strength locational factor, after "a Network Service Provider" there were inserted "or VicGrid"; and

(z) in the definition of system strength service payment, after "Transmission Network Service Provider" (where twice occurring) there were inserted "or VicGrid or"; and

(za) in the definition of Transmission Annual Planning Report, after "a Transmission Network Service Provider" there were inserted "or VicGrid"; and

(zb) there were inserted, in alphabetical order, the following definition—

"VicGrid

Has the same meaning as in the National Electricity (Victoria) Act 2005 of Victoria.".

Division 9—Chapter 11 of the Rules (Savings and Transitional Rules)

76 Calculation and notification of Participant fees

Clause 11.153.2(b) of the Rules has the force of law in Victoria as if for "AEMO" there were substituted "VicGrid".

77 Participant fees in the pre-adjusted non-locational component

Clause 11.153.3 of the Rules has the force of law in Victoria as if—

(a) in paragraph (b)(1), for "AEMO (in its capacity as a Transmission Network Service Provider)" there were substituted "VicGrid"; and

(b) in paragraph (b)(2), for "AEMO" there were substituted "VicGrid"; and

78 Amendment of initial pricing methodology by VicGrid

Rule 11.17 of the Rules has the force of law in Victoria as if after clause 11.17.6 there were inserted—

"11.17.6A Amendment of initial pricing methodology by VicGrid

(a) Despite anything to the contrary in these Rules or guidelines made under these Rules, VicGrid may amend its initial pricing methodology if the amendment is necessary as a consequence of the enactment of the National Electricity (Victoria) Amendment (VicGrid Stage 2 Reform) Act 2025 of Victoria.

(b) However, VicGrid must not amend its initial pricing methodology under paragraph (a) to extend the period that methodology is in effect beyond 30 June 2028.

(d) If VicGrid amends its initial pricing methodology under paragraph (a), it must give the AER a copy of that methodology, as amended.

(e) For the purposes of this clause, VicGrid's initial pricing methodology is the pricing methodology to which section 118 of the National Electricity (Victoria) Amendment (VicGrid Stage 2 Reform) Act 2025 of Victoria applies.".

Part 3—Administration

Division 1—Protected information

79 Disclosure of protected information

For the purposes of section 54C(2a)(l) of the National Electricity (Victoria) Law, the Commonwealth Scientific and Industrial Research Organisation is prescribed.

Division 2—Immunities

80 Immunity—general

For the purposes of section 55E(2) of the Act, maximum amounts are prescribed as follows—

(a) the maximum amount of VicGrid's civil monetary liability to each person who suffers loss as a result of a relevant event is, in respect of that event, $2 million;

(b) however, if the amount of VicGrid's civil monetary liability to the person in respect of that event (as affected, if at all, by paragraph (a)) exceeds the prescribed amount in respect of the relevant event, the maximum amount of VicGrid's civil monetary liability to that person in respect of that event is that prescribed amount;

(d) the maximum amount of the civil monetary liability of each officer or employee of VicGrid to each person who suffers loss as a result of a relevant event is, in respect of that event, $1.

(2) VicGrid must ensure that the following provisions are complied with in relation to claims against VicGrid alleging civil monetary liabilities in respect of relevant events—

(a) the claims must be dealt with in an orderly manner, without bad faith and with reasonable dispatch;

(b) a register must be maintained containing the following in relation to each claim lodged with it—

(i) a unique identifier assigned to the claim and linked to each entry in the register relating to the claim;

(ii) the date on which the claim was lodged;

(iii) the amount of the claim (if stated by the claimant);

(iv) the date or dates on which the relevant event to which the claim relates is alleged to have occurred;

(v) the date of payment of the claim;

(vi) the amount paid on the claim;

(i) the amounts of the claims (as stated by the claimants) in relation to relevant events alleged to have occurred during the same prescribed 12 month period; and

(ii) the amounts paid on the claims in relation to relevant events alleged to have occurred during the same prescribed 12 month period;

(d) the running totals kept in the register must be made available for inspection by the public, during ordinary business hours and at no fee;

(e) a person appointed by the AER, must be allowed, at any time during ordinary business hours, to conduct inspections of the register and other records of VicGrid and to question officers and employees of VicGrid, for the sole purpose of checking the accuracy of the register.

(3) In this regulation—

prescribed amount in respect of a relevant event means the amount obtained by deducting from $100 million the aggregate of the amounts already paid by VicGrid in discharge of VicGrid's civil monetary liabilities to persons suffering losses as a result of relevant events occurring during the same prescribed 12 month period as that in which the relevant event occurred;

prescribed 12 month period means each period of 12 months beginning on and including 13 November in any year and ending on 12 November in the following year;

relevant event means—

(a) in relation to VicGrid—a negligent act or omission, or a series of connected negligent acts or omissions, in the performance or exercise, or purported performance or exercise, of a function or power of VicGrid under the National Electricity (Victoria) Law or the Rules; and

(b) in relation to an officer or employee of VicGrid—a negligent act or omission, or a series of connected negligent acts or omissions, in the performance or exercise, or purported performance or exercise, of a function or power of VicGrid under the National Electricity (Victoria) Law or the Rules.

Part 4—Other matters

81 AEMO function to assist VicGrid

(1) AEMO has the function of providing services and other support to VicGrid in relation to the conferral of functions and powers on VicGrid by or under—

(a) the Act; or

(b) the National Electricity (Victoria) Law; or

(d) the Rules.

Note

See section 49(1)(h) of the National Electricity (Victoria) Law.

(2) AEMO and VicGrid may enter into an agreement, arrangement or understanding under which AEMO provides a service or other support referred to in subsection (1).

(3) Nothing in this section requires AEMO to provide a service or other support to VicGrid if AEMO and VicGrid have not entered into an agreement, arrangement or understanding for the provision of that service or support.

82 Application of section 44AAEC of the Competition and Consumer Act 2010 of the Commonwealth

Section 44AAEC of the Competition and Consumer Act 2010 of the Commonwealth extends to and has effect for the purposes of Rule 8.11 of the Rules as modified under these Regulations.

═════════════

Endnotes

1 General information

See www.legislation.vic.gov.au for Victorian Bills, Acts and current Versions of legislation and up-to-date legislative information.

The National Electricity (Victoria) (VicGrid) Regulations 2025, S.R. No. 113/2025 were made on 28 October 2025 by the Governor in Council under section 12A of the National Electricity (Victoria) Act 2005, No. 8/2005 and came into operation on 1 November 2025: regulation 3.

The National Electricity (Victoria) (VicGrid) Regulations 2025 will sunset 10 years after the day of making on 28 October 2035 (see section 5 of the Subordinate Legislation Act 1994).

INTERPRETATION OF LEGISLATION ACT 1984 (ILA)

Style changes

Section 54A of the ILA authorises the making of the style changes set out in Schedule 1 to that Act.

References to ILA s. 39B

Sidenotes which cite ILA s. 39B refer to section 39B of the ILA which provides that where an undivided regulation, rule or clause of a Schedule is amended by the insertion of one or more subregulations, subrules or subclauses the original regulation, rule or clause becomes subregulation, subrule or subclause (1) and is amended by the insertion of the expression "(1)" at the beginning of the original regulation, rule or clause.

Interpretation

As from 1 January 2001, amendments to section 36 of the ILA have the following effects:

• Headings

All headings included in a Statutory Rule which is made on or after
1 January 2001 form part of that Statutory Rule. Any heading inserted in a Statutory Rule which was made before 1 January 2001, by a Statutory Rule made on or after 1 January 2001, forms part of that Statutory Rule.
This includes headings to Parts, Divisions or Subdivisions in a Schedule; Orders; Parts into which an Order is divided; clauses; regulations; rules; items; tables; columns; examples; diagrams; notes or forms.
See section 36(1A)(2A)(2B).

• Examples, diagrams or notes

All examples, diagrams or notes included in a Statutory Rule which is made on or after 1 January 2001 form part of that Statutory Rule. Any examples, diagrams or notes inserted in a Statutory Rule which was made before 1 January 2001, by a Statutory Rule made on or after 1 January 2001, form part of that Statutory Rule. See section 36(3A).

• Punctuation

All punctuation included in a Statutory Rule which is made on or after
1 January 2001 forms part of that Statutory Rule. Any punctuation inserted in a Statutory Rule which was made before 1 January 2001, by a Statutory Rule made on or after 1 January 2001, forms part of that Statutory Rule.
See section 36(3B).

• Provision numbers

All provision numbers included in a Statutory Rule form part of that Statutory Rule, whether inserted in the Statutory Rule before, on or after
1 January 2001. Provision numbers include regulation numbers, rule numbers, subregulation numbers, subrule numbers, paragraphs and subparagraphs. See section 36(3C).

• Location of "legislative items"

A "legislative item" is a penalty, an example or a note. As from 13 October 2004, a legislative item relating to a provision of a Statutory Rule is taken to be at the foot of that provision even if it is preceded or followed by another legislative item that relates to that provision. For example, if a penalty at the foot of a provision is followed by a note, both of these legislative items will be regarded as being at the foot of that provision. See section 36B.

• Other material

Any explanatory memorandum, table of provisions, endnotes, index and other material printed after the Endnotes does not form part of a Statutory Rule. See section 36(3)(3D)(3E).

2 Table of Amendments

There are no amendments made to the National Electricity (Victoria) (VicGrid) Regulations 2025 by statutory rules, subordinate instruments and Acts.

3 Explanatory details

No entries at date of publication.

1 National Electricity (Victoria) (VicGrid) Regulations 2025

Version No. 001

National Electricity (Victoria) (VicGrid) Regulations 2025

S.R. No. 113/2025

Version as at
1 November 2025

TABLE OF PROVISIONS

Regulation Page

Part 1—Preliminary 1

1 Objectives 1

2 Authorising provision 2

3 Commencement 2

4 Definitions 2

Part 2—Modifications to the National Electricity Rules 3

Division 1—Chapter 2 of the Rules (Registered Participants and Registration) 3

5 Development of Participant fee structure 3

6 Budgeted revenue requirements 3

Division 2—Chapter 3 of the Rules (Market Rules) 3

7 Payment of amounts to be recovered from Co‑ordinating Network Service Providers—Consultation with VicGrid 3

8 Register of DER information 4

9 Generation information page 4

10 Ancillary Services 4

11 Standing data 5

12 Auctions and eligible persons 6

13 Auction proceeds and auction expense fees 6

Division 3—Chapter 4 of the Rules (Power System Security) 7

14 Nomenclature Standards 7

Division 4—Chapter 5 of the Rules (Network Connection Access, Planning and Expansion) 7

15 Purpose and Application—Part B (Network Connection and Access) 7

16 Principles—Part B (Network Connection and Access) 8

17 Obligations of network service providers 9

18 Response to connection enquiry 9

19 Application for connection to declared shared network 9

20 Right of entry and inspection 9

21 Right of testing 10

22 Routine testing of protection equipment 10

23 Testing by Registered Participants of their own plant requiring changes to normal operation 10

24 Definitions for the purposes of Part D of Chapter 5 10

25 Transmission Annual Planning Report 11

26 Joint planning obligations of Transmission Network Service Providers and Distribution Network Service Providers 11

27 Joint planning in relation to retirement or de‑ratings of network assets forming part of the Declared Shared Network 12

28 Regulatory investment test for transmission procedures 12

The Regulations operate by two main conceptual mechanisms: substitution/insertion into the Rules, and the creation of discrete administrative consequences that attach to VicGrid.

Substitution and insertion into the Rules. The Regulations repeatedly treat references to AEMO, a Transmission Network Service Provider, Network Service Provider, Registered Participant or similar in specified Rules provisions as including or being replaced by VicGrid. Examples include treating VicGrid as a Registered Participant for participant fee calculation (clause 5), inserting VicGrid into the standing data and register duties (clause 11), making VicGrid responsible for elements of the Transmission Annual Planning Report (clause 25), and substituting VicGrid for AEMO in Chapter 6A application headings and paragraphs (clause 34). The technique is to give the relevant Rule the force of law in Victoria "as if" VicGrid had been the named entity. That method leaves the substantive text of the Rules intact while changing the identity of decision makers and duty holders for Victoria.
Administrative powers and procedural frameworks for VicGrid. The Regulations authorise and structure several new or adjusted functions for VicGrid. Notable concepts are:
- Contestability and procurement: VicGrid may prepare Contestability Guidelines and determine whether an augmentation is contestable (clauses 59 and 63). For contestable augmentations, VicGrid must prepare tender evaluation reports and provide them to the AER (clause 64, insertion 8.11.7(f1)). The AER is empowered to assess VicGrid's procurement process, prepare draft assessment reports within a specified timetable (40 business days), receive submissions from VicGrid (20 business days), and publish final assessment reports (60 business days) subject to redaction rules (clause 66, inserted 8.11.8A-8.11.8F).
- Pricing and revenue interactions: VicGrid is treated as a Registered Participant for participant fees and as an entity whose expenditures in carrying out declared network functions are to be recovered through Transmission Network Service Provider fees (clause 6, clause 39 S6A.4.1(b)(ii)). VicGrid may amend its initial pricing methodology without AER approval where necessary because of the Stage 2 Reform Act, constrained to not extend the methodology beyond 30 June 2028 (clause 78, insertion 11.17.6A).
- Planning, joint planning and REZ: VicGrid is placed into joint planning obligations, transmission annual planning report responsibilities, and may be a relevant actor for REZ design reports (clauses 25, 26, 32, 33). Clause 24 modifies the RIT‑T project definition to exclude projects specified in the Victorian transmission plan.
- Information governance and permitted recipients: CSIRO is prescribed as a permitted recipient of protected information under s 54C(2a)(l) of the National Electricity (Victoria) Law (regulation 79).
- Liability and register of claims: Regulation 80 prescribes monetary limits on VicGrid's civil liability for "relevant events", establishes a prescribed amount mechanism linked to a $100 million pool less amounts paid during the same prescribed 12 month period, and prescribes a $1 cap on civil liability of officers and employees for relevant events. It requires VicGrid to keep a public register of claims and to permit an AER appointee to inspect that register.

A further cross‑cutting concept is oversight: several amendments give the AER powers to assess or inspect VicGrid processes and require VicGrid to provide documents and information to the AER (see clause 66 insertions 8.11.8A-8.11.8F and regulation 80(2)(e)). The Regulations also create an explicit AEMO support function to VicGrid, but do not mandate AEMO assistance absent an agreement (regulation 81).

These core concepts reallocate roles in planning, procurement, market operation and regulatory recovery from AEMO or Transmission Network Service Providers to VicGrid in the Victorian jurisdiction, while creating reporting, oversight and liability parameters that shape how VicGrid will operate within the Rules.

The Regulations primarily reallocate responsibilities, duties, and rights among institutional actors active in the Victorian electricity regulatory environment. The principal affected parties, as defined or referenced in the text, are:

VicGrid. The Regulations put VicGrid at the centre of many modified Rule provisions. VicGrid is treated as a Registered Participant for participant fee purposes (clause 5), included in standing data and registers (clause 11), made a potential Co‑ordinating Network Service Provider in various contexts (clause 37), given power to determine contestability of augmentations and to prepare Contestability Guidelines (clauses 59 and 63), and given roles in planning, procurement, and revenue interactions (clauses 24, 25, 32, 38). VicGrid also becomes subject to reporting and monitoring requirements (clause 51), and is a party whose procurements may be assessed by the AER (clause 66).
Registered Participants and Transmission Network Service Providers. Existing Registered Participants remain subject to the Rules, but their relationships with VicGrid change. Many provisions now require interactions "between Registered Participants and VicGrid" or treat VicGrid equivalently to a Network Service Provider or Transmission Network Service Provider for specified purposes (for example, clauses 16, 17, 18, 19, 29). This affects generators, distribution businesses, and other entities that are Registered Participants in Victoria.
Declared transmission system operators and declared transmission systems. The Regulations insert obligations that require declared transmission system operators to provide information to VicGrid (clause 11(q) as substituted), and make VicGrid able to specify augmentations that are not contestable and that declared transmission system operators must accommodate in revenue proposals (clause 38 insertions S6A.1.1A and S6A.1.1B).
Australian Energy Regulator (AER). The AER acquires oversight functions specific to VicGrid procurements. It may assess VicGrid’s procurement processes, prepare draft and final assessment reports on competitive outcomes, and receive tender evaluation reports from VicGrid (clause 66 insertions 8.11.8A-8.11.8F). The Regulations also require that an AER appointee be allowed to inspect VicGrid’s register of claims (regulation 80(2)(e)).
AEMO. The Rules as modified continue to involve AEMO in numerous rule processes, but the Regulations also confer on AEMO a function to provide services and other support to VicGrid, subject to agreement between AEMO and VicGrid (regulation 81). Where the text substitutes VicGrid for AEMO, AEMO’s operational roles in Victoria are correspondingly reduced or adjusted in those specified areas.
Commonwealth Scientific and Industrial Research Organisation (CSIRO). CSIRO is prescribed as an entity permitted to receive protected information held by VicGrid for the purposes of s 54C(2a)(l) of the National Electricity (Victoria) Law (regulation 79). That prescription changes the pool of possible recipients of protected information.
Contractors, tenderers and potential bidders for augmentations. The Regulations alter how contestability is determined and require tender evaluation reports and AER assessments. These procedural changes affect firms competing to construct transmission augmentations in Victoria, because VicGrid determines contestability and the AER may assess the procurement design and outcome (clauses 59, 63, 64 and 66).
Officers and employees of VicGrid. Regulation 80(1)(d) prescribes a pecuniary cap of $1 for the civil monetary liability of each officer or employee of VicGrid in respect of a relevant event. That is a direct statutory limit on personal civil liability (with the exception of death or bodily injury, reg 80(1)(c)).
Consumers and the public. The public is given inspection rights to the claims register that VicGrid must maintain and to running totals of amounts of claims and payments for specified 12 month periods (regulation 80(2)(d)). The AER’s final assessment reports on procurement are to be published subject to redaction rules (inserted 8.11.8C).
Declared REZ stakeholders. Where a REZ scheme declaration is in force, VicGrid is relieved of preparing or publishing a REZ design report for that REZ (clause 33). This affects parties engaged in REZ development and planning.

The Regulations thus create a realignment of who decides what in Victoria: VicGrid plays a larger operational, planning and procurement role; AEMO retains support and residual roles subject to agreement; the AER gains explicit oversight and reporting interaction points with VicGrid; CSIRO gains an information access pathway; and contractors, declared transmission system operators and Registered Participants must interact with VicGrid in new or modified processes.

The Regulations give rise to a dense set of duties and rights by inserting VicGrid into numerous Rule provisions. Below are the principal duties and rights established or modified by the text, with clause references.

Duties to participate in planning, standing data and registers
- VicGrid is required to maintain the register referred to in clause 3.13.3(d) for the declared transmission system of an adoptive jurisdiction (clause 11(q)(1)). Declared transmission system operators must provide VicGrid with information reasonably required for maintaining the register, and VicGrid must notify and provide AEMO with details of additions or changes without delay (clause 11(q)(2)-(3)).
- VicGrid is inserted into duties relating to the Transmission Annual Planning Report (clause 25), joint planning obligations with Transmission Network Service Providers and Distribution Network Service Providers (clause 26), and certain aspects of REZ design reporting and exemptions (clause 33).
Connection and access duties
- VicGrid is included in application and principle provisions for Part B (Network Connection and Access) and specified Part C provisions, and therefore participates in connection applicant processes and related mechanisms (clause 15(1)-(4), clause 16).
- Rule 5.3B, which concerns application for connection to the declared shared network, is modified to substitute VicGrid for AEMO in paragraph (a) and (b) (clause 19), creating a duty for VicGrid to handle certain connection applications.
Contestability, procurement and augmentation duties
- VicGrid may prepare and amend Contestability Guidelines for determining whether an augmentation is contestable (clause 59). The first set of guidelines is excluded from the Rules consultation procedures (clause 59(e)).
- VicGrid may determine an augmentation to be contestable (clause 63(b)) or not contestable for specified reasons (clause 63(c)). VicGrid must prepare a tender evaluation report after tender and evaluation and supply it to the AER within 15 business days after notifying tenderers of the outcome (clause 64, inserted 8.11.7(f1)(1)-(2)).
- For certain non‑contestable augmentations below a capital cost threshold, VicGrid may authorise them for the purposes of s 50F(1)(c) of the NEL if specific conditions are met, including determination after consulting AEMO that the augmentation is operationally necessary and prudent (clause 62).
Procurement oversight rights of AER
- The AER may assess whether VicGrid’s procurement process will achieve a competitive outcome (inserted 8.11.8A). The AER must prepare a draft assessment report within a specified period (40 business days) and give the draft to VicGrid for submissions within 20 business days (inserted 8.11.8B). The AER must publish a final assessment report no later than 60 business days after providing the draft to VicGrid, subject to potential non‑publication of parts (inserted 8.11.8C). VicGrid must provide documents and information reasonably required by the AER (inserted 8.11.8E), and must not unreasonably refuse AER attendance at procurement meetings (inserted 8.11.8A(d)-(e)).
Fee and revenue duties and rights
- VicGrid is to be treated as a Registered Participant for the purpose of Participant fee structure development and calculation (clause 5). AEMO’s NTP function fees applicable to VicGrid as a Co‑ordinating Network Service Provider are to be treated as Participant fees recoverable from VicGrid (clause 6). Schedule 6A.1 additions require declared transmission system operators to supply information to VicGrid about augmentations specified by VicGrid for inclusion in Revenue Proposals (clause 38 S6A.1.1A and S6A.1.1B).
Reporting, monitoring and dispute duties
- Reporting requirements and monitoring standards in clause 8.7.2 are extended to include VicGrid, with specific insertion of reporting requirements for VicGrid and procedures and standards applicable to VicGrid for information and data it receives (clause 51). Dispute management systems and stages of dispute resolution are modified to include VicGrid as a participant in dispute processes (clauses 43-46).
Confidentiality and protected information rights
- The confidentiality clause is adjusted so that officers of a Transmission Network Service Provider or VicGrid involved in transmission service pricing must not be involved in competitive electricity trading activities of specified entities (clause 47 substituted paragraph (d)). Further, the Regulations prescribe CSIRO as permitted to receive protected information under the National Electricity (Victoria) Law (regulation 79).
Liability and register duties
- Regulation 80 prescribes maximum civil monetary liability caps: $2 million for VicGrid’s civil liability to each person in respect of a relevant event, subject to the “prescribed amount” mechanism which can reduce the available cap depending on aggregate payments during the prescribed 12 month period; $1 maximum for civil liability of each officer or employee; and an exclusion for death or bodily injury (regulation 80(1)(a)-(c), (d)). VicGrid must maintain a claims register with specific entries and must make running totals available for public inspection (regulation 80(2)(a)-(d)). An AER appointee must be allowed to inspect the register for checking accuracy (regulation 80(2)(e)).
AEMO assistance function and agreement rights
- AEMO is given a function to provide services and other support to VicGrid related to the conferral of functions and powers, but provision of such services is subject to agreement, arrangement or understanding between AEMO and VicGrid; nothing requires AEMO to provide services absent an agreement (regulation 81(1)-(3)).
Transitional and savings adjustments

The Regulations make a number of transitional and savings adjustments to Chapter 11 of the Rules around Participant fees and the amendment of VicGrid’s initial pricing methodology (clauses 76-78). VicGrid may amend its initial pricing methodology without AER approval if necessary as a consequence of the Stage 2 Reform Act, but not to extend the methodology beyond 30 June 2028 (clause 78 insertion 11.17.6A).

Collectively, these duties establish VicGrid as an operational and planning decision maker in Victoria with attendant reporting, procurement and fee interactions, and create AER oversight pathways and statutory limits on VicGrid’s civil liabilities and on officer liability.

The Regulations themselves do not create an extensive new catalogue of civil or criminal penalties in the text; rather they modify the Rules and, through those insertions, bring VicGrid within the existing enforcement architecture of the Rules, the National Electricity (Victoria) Law and related instruments. Key enforcement‑relevant features in the Regulations are as follows.

Civil liability caps and register oversight (regulation 80)
- Regulation 80 prescribes maximum civil monetary liability amounts for VicGrid and for officers or employees in relation to "relevant events". VicGrid's civil monetary liability to each person in respect of a relevant event is capped at $2 million (regulation 80(1)(a)), but the regulation also contains a "prescribed amount" concept which limits the maximum amount to the prescribed amount if aggregate payments exceed certain thresholds (regulation 80(1)(b) and definition of prescribed amount in regulation 80(3)). The prescribed amount equals $100 million less aggregate amounts already paid by VicGrid in discharge of civil monetary liabilities for relevant events occurring in the same prescribed 12 month period (regulation 80(3) definitions). The $2 million cap and prescribed amount together create an upper bound on available recovery from VicGrid for negligent acts or omissions defined as relevant events.
- For officers and employees, the maximum civil monetary liability to each person for a relevant event is set at $1 (regulation 80(1)(d)). The regulation exempts civil monetary liability for death or bodily injury from these caps (regulation 80(1)(c)).
- To facilitate oversight, the regulation requires VicGrid to process claims fairly and promptly (regulation 80(2)(a)), to maintain a publicly inspectable register with specific fields (regulation 80(2)(b)-(c)), to make running totals available for public inspection at no fee (regulation 80(2)(d)), and to permit an AER appointee to inspect the register and related records and to question officers and employees for the sole purpose of checking accuracy (regulation 80(2)(e)). Those obligations create administrative enforcement levers around transparency and AER oversight rather than prescribing additional penalties.
AER procurement assessment process and information powers (insertions 8.11.8A-8.11.8F)
- The AER is given a statutory process to assess whether VicGrid's procurement of contestable augmentations will achieve a competitive outcome (inserted clause 8.11.8A). The AER must produce a draft assessment report within a specified period and give it to VicGrid (8.11.8B), consider VicGrid's submissions (8.11.8B(d)), and publish a final assessment report within a specified period subject to non‑publication of parts if appropriate (8.11.8C). The AER may request VicGrid to provide documents or information reasonably required for assessments, and VicGrid must accede without undue delay (8.11.8E). The Regulations state that the AER's actions do not affect the validity of procurement (8.11.8D), which means the AER's assessment is an oversight and transparency tool rather than a mechanism to unwind procurements.
- The AER can be invited to attend VicGrid procurement meetings to observe the meetings, and VicGrid must not unreasonably refuse (8.11.8A(d)-(e)). Failure to comply with requests for documents or attendance could be enforced through existing compliance powers available to the AER under the National Electricity (Victoria) Law and the National Electricity Rules framework, though the Regulations themselves do not set specific fines for non‑compliance with the new information duties.
Confidentiality and tier 1 civil penalty note
- The replacement paragraph (d) of clause 8.6.1 (confidentiality) notes that the paragraph is classified as a tier 1 civil penalty provision under the National Electricity (South Australia) Regulations (clause 47(a) substitution). This note signals that the confidentiality obligations are treated as high‑order civil penalty provisions in an analogous jurisdictional instrument; however the Regulations themselves do not in this text specify penalty amounts, rather they import or align the Rules' confidentiality regime.
Interaction with existing enforcement frameworks
- The Regulations do not displace the existing enforcement and civil penalty architecture of the National Electricity (Victoria) Law and the Rules. Where the Regulations place VicGrid into existing Rule provisions (for example planning and operations), VicGrid becomes subject to the enforcement tools that already apply to a body in that role under the National Electricity (Victoria) Law and the Rules. The Regulations explicitly preserve the validity of procurement actions notwithstanding the AER’s assessments (inserted 8.11.8D(a)).
Information and procedural compliance obligations
- Several clauses create explicit duties to give documents, publish guidelines and reports, and maintain systems and registers (for example clauses 59, 64(f1), 66 insertions and regulation 80). Compliance with these duties will be monitored under the reporting and monitoring provisions extended to VicGrid (clause 51), and non‑compliance would be handled within the oversight powers of the AER and relevant Rules enforcement processes.

In summary, the Regulations embed VicGrid within existing Rules enforcement regimes and create new reporting, transparency and AER oversight mechanisms, while simultaneously imposing statutory caps on civil monetary liability and creating register and inspection obligations that are enforceable through the AER’s inspection powers and the wider Rule enforcement architecture.

The Regulations function as a Victorian subordinate instrument that modifies the National Electricity Rules "as if" certain textual substitutions had been made, and they do so under the authorising power in s 12A of the National Electricity (Victoria) Act 2005 (regulation 2). The text contains multiple express interactions with other statutes and regulatory instruments. These interactions are as follows.

National Electricity (Victoria) Act 2005 and National Electricity (Victoria) Law
- The Regulations are expressly made under s 12A of the National Electricity (Victoria) Act 2005 (regulation 2) and their stated objective is to make modifications to the Rules as a consequence of the National Electricity (Victoria) Amendment (VicGrid Stage 2 Reform) Act 2025 (regulation 1). Several modifications refer directly to functions and definitions in the National Electricity (Victoria) Law, for example the note in regulation 81 refers to s 49(1)(h) of the National Electricity (Victoria) Law. The Regulations therefore operate within the statutory framework established by the Victorian Act and the Law, and integrate VicGrid into that framework by modifying the Rules.
National Electricity Rules
- The Regulations modify many parts of the National Electricity Rules by substitution or insertion so that VicGrid is treated as if it were AEMO or a Network Service Provider, or included alongside them, in specified Rule provisions (see, for example, clauses 5, 6, 11, 25, 34, 59, 63 and many others). The method of interaction is to give the Rules the force of law in Victoria with the textual changes described, effectively reassigning responsibilities while leaving the substantive Rule architecture intact.
National Electricity Law (NEL) and other Commonwealth statutes
- The Regulations reference the NEL in clause 62 where certain augmentations are authorised for the purposes of s 50F(1)(c) of the NEL. They also link to the Competition and Consumer Act 2010 (Commonwealth) by extending s 44AAEC of that Act to Rule 8.11 as modified under these Regulations (regulation 82). That extension integrates certain competition law protections and rules with VicGrid’s procurement and contestability regime.
Interaction with the AER’s role under existing law
- Inserted provisions (8.11.8A-8.11.8F) create a statutory pathway for the AER to assess VicGrid procurements, to request documents and to publish assessment reports. Those procedures sit alongside and use the AER’s existing regulatory powers under the National Electricity (Victoria) Law and the Rules. The Regulations create specific timelines and obligations for both VicGrid and the AER in respect of procurement assessment, which must be read in conjunction with the AER’s statutory powers as provided elsewhere in the Law and Rules.
Protected information and disclosure
- Regulation 79 prescribes CSIRO for the purposes of s 54C(2a)(l) of the National Electricity (Victoria) Law, creating an exception to protected information restrictions for that organisation. That insertion must be understood in the context of the protective regime established by the Law concerning protected information, confidentiality and authorised disclosures.
Liability and public inspection interacting with Victorian administrative law
- Regulation 80 prescribes liability caps and specific recordkeeping and inspection obligations, including public inspection rights and inspection by an AER appointee. These obligations intersect with Victorian administrative law and disclosure regimes because they require public access to certain running totals and enable AER inspection for accuracy checking, thereby integrating corporate governance and public transparency duties into VicGrid’s operation.
Transitional and savings interactions
- The Regulations amend Chapter 11 of the Rules (savings and transitional rules) to ensure a smooth transition of participant fee calculation and pricing methodology matters for VicGrid (clauses 76-78). Clause 78 allows VicGrid to amend its initial pricing methodology without AER approval if necessary as a consequence of the Stage 2 Reform Act, but limits that amendment period to not extend the methodology beyond 30 June 2028. Those transitional items interact with the National Electricity (Victoria) Amendment Act and with the AER’s established role on pricing methodology approval elsewhere in the Law.
Interactions that remain subject to agreement
- Regulation 81 confers a function on AEMO to provide services and support to VicGrid but makes clear that AEMO and VicGrid may enter into agreements for that purpose and that AEMO is not required to provide services absent such an agreement. That interaction leaves operational dependency optional and governed by contract between the two statutory entities.

Taken together, the Regulations are designed to sit within, and to reallocate responsibility across, the existing multi‑jurisdictional statutory architecture that governs the national electricity market in Victoria. They change who exercises various Rule duties and create tailored interactions with the AER, NEL provisions, the Competition and Consumer Act s 44AAEC, and protected information regimes.

The Regulations provide their own limited amendment and transitional scaffolding and the Endnotes record the legislative history to date of the instrument itself. The relevant points from the text and endnotes are:

Making and commencement
- The Regulations were made by the Governor in Council on 28 October 2025 and come into operation on 1 November 2025 (regulation 3 and Endnotes, part 1). They are made under s 12A of the National Electricity (Victoria) Act 2005 (regulation 2).
Sunset provision
- The Endnotes record that the Regulations will sunset 10 years after the day of making, that is on 28 October 2035, pursuant to section 5 of the Subordinate Legislation Act 1994 (Endnotes, part 1). The Regulations themselves do not set a sunset date in the operative provisions; the Endnotes provide the statutory sunset information.
Amendments to other texts and temporary transitional measures
- The body of the Regulations substitutes VicGrid into numerous Rule provisions; many such substitutions are qualified with time‑limited or transitional carve outs. For example, clause 40 inserts a paragraph (ca) into clause S6A.4.2 to state that clause S6A.4.2(c)(3) does not apply during the period commencing on the day the Regulations come into operation and ending on the first anniversary of that day. That is an expressly time‑limited transitional modification intended to provide a one year transitional relief from a particular application of Schedule 6A.4.2(c)(3).
Pricing methodology amendment window
- Clause 78 inserts a new Rule 11.17.6A allowing VicGrid to amend its initial pricing methodology if the amendment is necessary as a consequence of the Stage 2 Reform Act, but it prohibits VicGrid from amending that methodology to extend its effect beyond 30 June 2028 (clause 78( a )-(b)). This creates an explicit temporary amendment power linked to the reform implementation period.
Table of Amendments and explanatory details
- The Endnotes include a Table of Amendments section which currently records "There are no amendments made to the National Electricity (Victoria) (VicGrid) Regulations 2025 by statutory rules, subordinate instruments and Acts." (Endnotes, part 2). The Explanatory details section is blank at time of publication (Endnotes, part 3). This indicates no subsequent subordinate amendments up to the version noted (1 November 2025).
Style and interpretation notes
- The Endnotes reproduce standard interpretation and style notes (from the Interpretation of Legislation Act 1984) which apply to the Statutory Rule. These are not amendments but are relevant for reading and applying the Regulations.
Procedural or staged transitions within the Rules
- Several of the inserted Rule modifications include staged or consultative processes (for example the AER procurement assessment guidelines must be prepared in accordance with the Rules consultation procedures and VicGrid must be consulted on AER procurement assessment guideline drafting) and the first set of VicGrid’s Contestability Guidelines is excepted from the Rules consultation procedures (clause 59(e)). These are procedural transitional design choices rather than textual amendments to the Regulations themselves.

In summary, the Regulations were made late October 2025 and took effect 1 November 2025, include a number of explicitly time‑limited transitional measures inside the modified Rules, provide VicGrid with temporary amendment powers in relation to its initial pricing methodology up to 30 June 2028, and are subject to a 10 year statutory sunset recorded in the Endnotes. The published table of amendments reports no subsequent changes as at the version date.

The text of the Regulations and the Endnotes contain no reference to any litigation history. The Endnotes include an Explanatory details section that is blank and the Table of Amendments records no subsequent instruments or Acts having amended these Regulations (Endnotes, parts 2 and 3). There are no cases, disputes or judicial decisions cited in the instrument itself.

Given the absence of litigation references in the source material, there is no court or tribunal authority concerning the interpretation, validity or application of these Regulations recorded in the document. Any litigation or judicial review that may arise after the commencement date would be external to this instrument and is not mentioned in the published text.

Practitioners should therefore treat the Regulations as freshly made subordinate legislation with no recorded judicial interpretation or administrative determinations cited in the source. Where questions of interpretation emerge , for example concerning the operation of the prescribed amounts in regulation 80, the boundaries of VicGrid’s contestability discretion (clauses 59 and 63), or the limits of AER oversight under the inserted procurement assessment clauses , those questions have not been resolved within the instrument and would depend on subsequent adjudication or administrative guidance not contained in this text.

The Regulations contain several specific drafting choices and procedural details that create non‑obvious operational consequences. Below are practical "gotchas" drawn from the text that lawyers, compliance officers, procurement teams and planners should note.

Officer and employee liability cap of $1 (regulation 80(1)(d))
- Regulation 80(1)(d) prescribes that the maximum amount of civil monetary liability of each officer or employee of VicGrid to each person who suffers loss as a result of a relevant event is, in respect of that event, $1. This is a statutory cap that applies to civil monetary liability for negligent acts or omissions in the performance or exercise of VicGrid functions (as defined under regulation 80(3)). It does not apply to death or bodily injury (regulation 80(1)(c)). The existence of an explicit $1 cap for officers and employees is an atypical statutory device and will materially affect third party recovery strategies and indemnity arrangements. The text requires VicGrid to comply with claim handling and register obligations in relation to such claims (regulation 80(2)).
Aggregate cap mechanism tied to $100 million pool (regulation 80(3) definitions)
- Regulation 80 contains a "prescribed amount" concept whereby the prescribed amount equals $100 million less aggregate amounts already paid by VicGrid in discharge of civil monetary liabilities for relevant events in the same prescribed 12 month period. The prescribed 12 month period is defined to begin on 13 November and end on 12 November the following year. This creates an aggregate insurance‑like pool, but importantly the text reduces recoveries available to claimants once VicGrid has made prior payments during the same period. Parties should note that subparagraph 80(1)(b) gives a mechanism that could reduce the maximum payable below the $2 million per person cap depending on prior payments.
VicGrid’s contestability discretion and first guidelines exemption (clauses 59 and 63)
- VicGrid may prepare and amend Contestability Guidelines and determine whether an augmentation is contestable (clause 59 and 63). Critically, paragraph 59(e) states that the first Contestability Guidelines are not subject to the Rules consultation procedures. That means the initial guidelines can be adopted by VicGrid without going through the usual Rules consultation process, while subsequent amendments must follow the consultation procedures (59(c)). Entities reliant on contestability outcomes should therefore be aware that the initial baseline standards will be set without the usual consultative inputs.
Mandatory tender evaluation report and AER timelines (clause 64 and clause 66 insertions)
- After tender and evaluation, VicGrid must prepare a tender evaluation report and give it to the AER within 15 business days after notifying tenderers of the outcome (inserted 8.11.7(f1)). The AER then has 40 business days to prepare and give a draft assessment report to VicGrid (8.11.8B(b)), VicGrid has 20 business days to make submissions (8.11.8B(d)), and the AER must publish a final assessment report within 60 business days of providing the draft, subject to redaction (8.11.8C). These rigid timetables place strict time pressures on procurement and disclosure flows. Failure to meet the timeframes could hinder the timeliness of AER assessments and potentially delay publication.
AER information requests and obligation to accede (inserted 8.11.8E)
- The AER may request any document or information in VicGrid’s possession, power, custody or control relating to a procurement process, and VicGrid must accede "as soon as practicable and without undue delay." This creates a strong disclosure obligation; procurement systems and confidentiality protections must be structured to allow timely disclosure to the AER.
VicGrid may amend initial pricing methodology without AER approval but only temporarily (clause 78)
- Rule 11.17.6A allows VicGrid to amend its initial pricing methodology without AER approval if necessary as a consequence of the VicGrid Stage 2 Reform Act. However VicGrid may not extend the period that methodology is in effect beyond 30 June 2028. While this expedites certain transitional pricing fixes, it is limited in scope and duration; any permanent or longer‑term pricing methodology changes will still engage the AER approval regime.
Interaction between VicGrid notices and declared transmission system operators’ revenue proposals (clause 38)
- The inserted S6A.1.1A and S6A.1.1B provide that VicGrid may give written notice to a declared transmission system operator specifying augmentations that are not contestable, and that the declared transmission system operator must then include forecast capital expenditure for those augmentations in its revenue proposal. This reverse notice dynamic gives VicGrid influence over what is treated as non‑contestable augmentation expenditure and therefore what can be included in a declared transmission system operator’s revenue forecast. Operators must have processes to respond to such notices.
CSIRO as a prescribed recipient of protected information (regulation 79)
- Regulation 79 prescribes CSIRO as permitted to receive protected information under s 54C(2a)(l) of the National Electricity (Victoria) Law. Entities must ensure protected information handling accounts for this specific prescribed recipient, including consent, recordkeeping and disclosure protocols.
AEMO assistance is contractual, not mandatory (regulation 81)
- Regulation 81 gives AEMO a function of providing services and support to VicGrid, but makes clear such services occur only if AEMO and VicGrid enter into an agreement, arrangement or understanding; AEMO is not required to provide services absent agreement (regulation 81(2)-(3)). Operational dependencies that assume AEMO support should therefore be formalised in agreements.
Public inspection of claim running totals (regulation 80(2)(d))

Running totals of amounts of claims and payments for relevant events in each prescribed 12 month period must be made available for inspection by the public during ordinary business hours and at no fee. This creates a transparency obligation that could influence public perception and stakeholder relations and must be operationalised by VicGrid.

These "gotchas" are concrete legal and operational features generated by the Regulations. Organisations interacting with VicGrid or participating in VicGrid procurements should read the relevant clauses carefully and plan internal procedures for compliance, disclosure, and contractual protection.

Complying with the Regulations will require operational, governance, reporting and contractual steps from VicGrid and from counterparties who will interact with VicGrid under the modified Rules. Below is a practical compliance checklist tied to the text, suitable for counsel, compliance teams, procurement managers, and system operators.

Governance and internal policy updates
- Update internal governance documents, delegations and conflict of interest policies to reflect VicGrid’s new statutory roles across planning, connection, standing data, and contestability (see clauses 11, 15, 25, 59, 63). Ensure persons involved in transmission service pricing are not engaged in competitive electricity trading activities in the circumstances described in clause 47(a) substituted paragraph (d).
- Revise officer and employee indemnity and insurance arrangements in light of regulation 80’s caps: ensure corporate indemnity and appropriate insurance coverage are in place because the regulation caps officer and employee civil liability at $1 (regulation 80(1)(d)) and caps VicGrid’s civil liability to each person at $2 million subject to the prescribed amount mechanism (regulation 80(1)(a)-(b)).
Claims handling, register maintenance and public inspection
- Implement the claims handling procedures required by regulation 80(2)(a) to deal with claims "in an orderly manner, without bad faith and with reasonable dispatch".
- Establish and maintain the claims register with required fields: unique identifier, date lodged, amount of claim (if stated), date(s) of alleged relevant event, date of payment, amount paid (regulation 80(2)(b)(i)-(vi)).
- Maintain separate running totals for amounts of claims and amounts paid in relation to relevant events within each prescribed 12 month period, and make these running totals available for public inspection during ordinary business hours at no fee (regulation 80(2)(c)-(d)).
- Prepare for AER inspections of the register and records and for questioning of officers and employees (regulation 80(2)(e)).
Procurement and contestability processes
- Prepare Contestability Guidelines under clause 8.11.3A(a) and publish them on VicGrid’s website as required by clause 59(d). Note that paragraph 59(e) exempts the first set of guidelines from the Rules consultation procedures; however, subsequent amendments must follow the Rules consultation procedures (59(c)).
- Ensure tender and evaluation processes for contestable augmentations produce a tender evaluation report and notify all tenderers of outcomes (inserted 8.11.7(f1)(1)-(2)). Prepare internal timetables to provide the tender evaluation report to the AER within 15 business days of notifying tenderers.
- Prepare to accede to AER requests for documents and information reasonably required for procurement assessments "as soon as practicable and without undue delay" (inserted 8.11.8E). Build data management and confidentiality review processes enabling timely disclosure to the AER while protecting commercially sensitive material that may be redacted under 8.11.8C(c).
AER engagement and response processes
- Establish processes to respond to the AER’s draft assessment report within 20 business days as permitted under 8.11.8B(d). Coordinate legal and procurement teams to prepare factually supported submissions within the timetable.
- Anticipate public publication of the AER’s final assessment report within 60 business days of the draft; prepare communications strategies and confidentiality assessments for material that may be withheld for publication reasons under 8.11.8C(c).
Pricing methodology and revenue interactions
- Review VicGrid’s initial pricing methodology and consider whether any urgent amendments are necessary under 11.17.6A(a). If amendments are necessary and rely on this clause, ensure that amendments do not extend the period of the methodology beyond 30 June 2028 and provide a copy of the amended methodology to the AER (11.17.6A(b)-(d)).
- Where VicGrid will issue notices under S6A.1.1B specifying non‑contestable augmentations, implement processes to identify augmentations and issue written notices to declared transmission system operators so forecasts are correctly included in revenue proposals (clause 38 insertions S6A.1.1A and S6A.1.1B).
Planning, connection and standing data obligations
- Update processes for maintaining standing data and registers for declared transmission systems, ensure timely notification to AEMO of additions or changes, and implement reasonable information exchange protocols with declared transmission system operators (clause 11(q)(1)-(3) and related insertions).
- Integrate VicGrid’s responsibilities into joint planning processes, Transmission Annual Planning Report preparation, and REZ design report processes (clauses 25, 26, 32, 33). Where a REZ scheme declaration is in force, ensure systems track exemption from REZ design reporting obligations (clause 33(b1)).
Dispute management and reporting compliance
- Ensure VicGrid’s dispute management system is compliant with the modified clause 8.2.3 and that stage 1 and stage 2 dispute resolution processes incorporate VicGrid as a party as required by clauses 43-46.
- Implement the reporting requirements and monitoring standards inserted into clause 8.7.2 for VicGrid, including procedures and standards applicable to information and data received by VicGrid in relation to matters relevant to the Rules (clause 51(b)(1A) and (3A)).
Protected information and CSIRO disclosures
- Update protected information disclosure protocols to account for CSIRO being a prescribed recipient under regulation 79. Ensure recordkeeping and lawful disclosure checks are performed before disclosing protected information to CSIRO in accordance with the National Electricity (Victoria) Law provisions referenced.
AEMO support arrangements
- If VicGrid intends to rely on AEMO for services and support under regulation 81, negotiate and execute an agreement, arrangement or understanding with AEMO. Do not assume AEMO will provide services without a formal agreement (regulation 81(2)-(3)).
Training, communications and stakeholder engagement

Train staff on the new AER timetables, disclosure obligations, contestability guidance, claims register requirements and pricing methodology amendment limits.
Communicate clearly with declared transmission system operators, prospective tenderers, Registered Participants, and the AER about processes for notices, tender evaluation reports, AER assessments and access to standing data.

Implementing these steps will address the principal obligations and operational interactions created by the Regulations. Ensure legal counsel reviews templates for notices, tender evaluation reports and responses to AER draft reports. Keep contemporaneous records of decisions, notifications and information disclosures to meet the transparency and inspection obligations established by the Regulations.

National Electricity (Victoria) (VicGrid) Regulations 2025

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Deep Dive

What it does

Current sections

National Electricity (Victoria) (VicGrid) Regulations 2025

Source text: opening excerpt

1 National Electricity (Victoria) (VicGrid) Regulations 2025

Main concepts

Who it affects

Key duties and rights

Penalties and enforcement

How it interacts with other laws

Amendment history

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How to comply