DRAFT MINUTES – Consumer Forum
MEETING: 10
LOCATION: AEMO Offices and Teleconference
CONTACT: ConsumerForum@aemo.com.au
ATTENDEES:
NAME
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COMPANY
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LOCATION
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Sandra McLaren (Chair)
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AEMO
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Melbourne
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Kirsty Camilleri (Secretariat)
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AEMO
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Melbourne
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Alex Driscoll
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AEMO
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Brisbane
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Courtney Roberts
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AEMO
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Melbourne
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Damien Sanford
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AEMO
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Melbourne
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Megan Irwin
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AEMO
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Melbourne
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Tania McIntyre
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AEMO
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Melbourne
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Tim Sheridan
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AEMO
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Melbourne
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Mark Henley
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Uniting Communities
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Adelaide
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Saul Milner
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Gas Trading Australia
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Melbourne
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Oliver Derum
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Energy Consumers Australia
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Sydney
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Sabiene Heindl
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Energy Consumers Australia
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Sydney
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Craig Memery
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Public Interest Advocacy Centre
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Sydney
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Miyuru Ediweera
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Public Interest Advocacy Centre
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Sydney
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Eileen Newmarch
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Care Financial Counselling Service
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Teleconference
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David Headberry
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Major Energy Users
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Teleconference
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Jennifer Brownie
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Queensland Electricity Users Network
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Teleconference
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Phil Pollard
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Queensland Electricity Users Network
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Teleconference
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Gavin Dufty
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St Vincent de Paul Society
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Teleconference
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Attendance, apologies and confirm agenda
Sandra McLaren (AEMO) opened the meeting welcoming participants to the May consumer forum.
The agenda was confirmed.
2. Minutes and action items from previous meeting
Sandra McLaren noted the minutes and action items from the previous Consumer Forum (3 February 2017). The minutes were accepted with no changes to be made.
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South Australia recent events
Sandra McLaren (AEMO) advised that Mark Stedwell (AEMO) was unable to attend and Damien Sanford (AEMO) would therefore be presenting this agenda item on his behalf.
Damien advised that there has been three separate events occur in South Australia (SA) over recent months. These included AEMO load shedding on 8 February 2017, AEMO issuing a direction to a generator for additional capacity on 1 March 2017 and on 3 March 2017 the loss of multiple generating units due to transmission failure.
In relation to the 8 February load shedding event, Mark Henley (Uniting Communities) asked the question that since the National Electricity Market (NEM) is interconnected, why was the decision made to load shed in SA and not elsewhere in the NEM? Damien responded that ‘pain sharing’ was explored by AEMO however in this particular instance the only option was to relieve the load on the part of the network creating the violation. Mark also asked what the ramp up time for Pelican Point is and how much power AEMO has to instruct them generate. Damien advised that market participants provide their 24 hour availability and on that particular day, Pelican Point’s second unit was not available to the market. AEMO contacted Engie to understand their start-up and minimum run time, which was initially advised by Engie to be four hours. AEMO questioned whether there was any flexibility on this and Engie later responded that they could require a one hour timeframe to start up. Unfortunately, this information was provided too late and AEMO proceeded to load shed.
David Headberry (Major Energy Users) pointed out that the gas market has the National Gas Emergency Response Advisory Committee (NGERAC) to look into potential situations such as this load shedding event. Damien advised that within the NEM there is a group called the National Electricity Market Emergency Management Forum (NEMEMF) (that Damien chairs), with each state being represented to discuss such situations.
Jennifer Brownie (QUEN) sought further clarification around the framework that is in place for such load shedding events. Damien advised that each state’s Jurisdiction System Security Coordinator (JSSC) takes into account the social and economic priorities and investigates whether any large industrial loads can be interrupted. Once this is completed, a list is prepared, signed off and provided to AEMO, Transmission Network Service Providers (TNSPs) and Distribution Network Service Providers (DNSPs). On 8 February 2017, since the issue was widespread across SA, load shedding was able to be done anywhere in the state. AEMO contacted Electranet to instruct them to load shed 100MW, Electranet then instructed SA Power Networks to do so. The loads will be rotated should load shedding be required more often.
Craig Memery suggested sharing the presentation that has been provided at the wholesale consultative forum regarding how AEMO handles security events. (Action item 10.3.1)
Craig Memery (PIAC) questioned why generators might not come online when AEMO is instructing them to do so and where safe to do so. Damien advised that this is most likely due to the costs associated with having staff and fuel etc. on standby. Craig also questioned whether they will get paid more than the market cap price and Damien advised that the start-up costs are confirmed up front, along with any compensation agreements.
Regarding the 3 March 2017 event, Mark Henley questioned why all four generators on Torrens Island and Pelican Point use the same switching yard, which meant that one transformer failure resulted in all four generators going offline. Damien confirmed that the issue was mostly as a result of the debris from explosion which tripped the other units, not the fact that there is a single point of failure on Torrens Island.
Mark Henley recommended AEMO develop a communication strategy to handle such events, which will help avoid negative commentary in the media or general public. Sandra McLaren advised that this is being looked into by AEMO as part of a Summer Readiness program.
Jennifer Brownie questioned what impact large battery banks (such as those that are planned in SA) will have on such events. Damien advised that it is still unclear how SA plans to use these large scale batteries, however if capacity is available it will be a fantastic tool to help avoid these type of events.
Gavin Dufty (St Vincent de Paul Society) commented that Lack of Reserve (LOR) notices do not seem to be real time and there seems to be a larger number of them being issued recently. Damien advised that most market notices (LOR1) are issued after 2pm, whereas LOR2 and LOR3 notices will be issued in real-time. The increased frequency is due to tightening supply conditions.
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Market Information (Traffic light system)
Alex Driscoll (AEMO) advised that Jennifer Brownie (QUEN) approached AEMO to investigate a traffic light system to notify consumers of potential or actual loss of supply. Alex ran through the current process AEMO uses (Lack of Reserve (LOR) notices), which is explained in the presentation pack supplied before this meeting. Sandra McLaren (AEMO) clarified that LOR notices are intended for market participants, not necessarily consumers.
Gavin Dufty (St Vincent de Paul Society) questioned whether the purpose of this system is to advise the community of the system status or for demand response to potentially reach out to assets that are not being used. Jennifer clarified that the main intention is to notify consumers in order to potentially minimise costs and enable them to prepare.
Craig Memery (PIAC) commented this may create unnecessary panic and also provide false hope in the situation where distribution line outages may occur.
Mark Henley (Uniting Communities) commented that alert systems exist for bush fires and dangerous weather events, and suggested there should be a similar arrangement in place for power to encourage customers to reduce their loads.
AEMO has agreed to discuss this traffic light system proposal with the JSSCs at the NEMEMF. (Action item 10.4.1)
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Operational Readiness
Damien Sanford (AEMO) referred to the presentation provided in the meeting pack. Damien advised that Operating strategies for both Electricity and Gas have been organised in preparation for this winter and summer.
David Headberry (Major Energy Users) questioned whether the proposals by the AEMC to change the gas market will they impact on these issues raised by AEMO. Damien responded that there is both opportunities and challenges that come with the market reform. Damien also noted that the AEMC is looking to improve their design after various discussions with industry.
Damien also advised that the key timings as listed on the last slide are subject to change. There will be an AEMO Roadshow for Summer Readiness in October 2017, to which all Consumer Representatives will be invited to attend.
Jennifer Brownie (QUEN) commented that today AEMO has been focusing on supply rather than price. It has previously been mentioned by AEMO that there may be the option for the lights to stay on, however this may result in higher costs. Damien advised that this is why contracting is very important, so that even if the spot price is extremely high they will not be exposed to these prices (noting that this will not impact general consumers i.e. mums and dads).
A number of stakeholders commented that this briefing has been very helpful.
Saul Milner (Gas Trading Australia) requested the average and maximum demand for each region to be added to slide 18. (Action item 10.5.1)
Saul also questioned whether AEMO could provide any information on the ‘Gas Supply Guarantee’. Damien advised that AEMO is currently looking into this and this will be added to the next Consumer forum agenda for discussion. (Action item 10.5.2)
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AEMO Website
This item has been postponed and will be discussed at the next Consumer Forum. (Action item 10.6.1)
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Forum Review Actions – Update
Tania McIntyre addressed the group on actions resulting from the Consumer Forum Review which took place in 2016.
Tania reminded consumer representatives of the original objectives of the Review being to:
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Gain and understand consumer advocacy groups’ feedback on AEMO’s Consumer Forums to date, including views on the forums’ value and effectiveness;
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Gain stakeholder feedback and ideas for what can be done differently in future Consumer Forums.
Tania explained that after conducting interviews with 11 different stakeholders, the feedback received indicated that the following areas needed to be focused on:
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Streamlined information and an increased consumer angle.
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Acknowledgement of the varied background of attending advocates and provide avenues for more tailored information on technical and specific issues.
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Increased two-way engagement by providing information to an increased number of consumer groups, making AEMO staff available for attending Consumer Advocacy Group Forums and identification of ‘hot topics’.
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Make forum information available on different platforms.
As a result of the above recommendations, AEMO has committed to:
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Offer pre-briefings to consumer advocates on any agenda items that they may like some further clarification on.
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Include a ‘Background’ and ‘Impact to Consumers’ section on all Executive Summaries in order to add more context to topics.
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‘Hot Topics' to be added to the agenda, based on suggestions from consumer representatives (email trigger to be sent to Forum attendees two weeks before agenda is due).
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Forum meeting packs uploaded to NEMchat for greater exposure and reach.
Gavin Dufty (St Vincent de Paul Society) suggested including discussion on the upcoming reports that are being published (such as the Finkel / AEMC Retail Market Report / ACCC / Victorian reports / NEFR/ reliability panel frequency response) at an upcoming forum or ad-hoc session. (Action item 10.7.1)
Mark Henley commented that Consumer representatives have a high turnover therefore there may be the need to revisit issues more often.
Eileen Newmarch (Care FCS) commented that access to pre-briefing sessions would be very much appreciated.
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AEMO Training Update
Megan Irwin (AEMO) advised that the Consumer Forum previously suggested a NEM Fundamentals course to complement the already existing courses. This will involve a 1.5 hour presentation delivered at all AEMO sites to deliver a basic understanding of the NEM and a chance to ask questions in an interactive session. The course title ‘Conversation about Energy’ has been recommended, with a pilot session targeted at this Consumer Forum group. The plan going forward would be to hold these on a quarterly basis.
Jennifer Brownie (QUEN) is concerned about the cost to travel to capital cities to receive this training and Sandra McLaren (AEMO) advised that phone or video link options will be offered for these sessions. Sandra also suggested that Jennifer be part of the pilot group and to provide any feedback on the technology options.
Craig Memery (PIAC) questioned whether these sessions will be NEM focused and Sandra advised that initially they will be NEM focused however AEMO is looking at a Gas fundamentals session in the future.
Mark Henley (Uniting Communities) advised that he is slightly wary about these sessions being too conversational, since attendees will need a basic understanding of the content before having a valuable discussion.
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Power of Choice Update
Tim Sheridan (AEMO) provided a brief update on the Power of Choice (POC) program as the Market Readiness Lead for POC. The POC group have been looking into smart meters, retail electricity markets and metering as well as the introduction of Full Retail Contestability (FRC). The group is currently focusing on the building and testing systems.
If any consumer representatives are interested in joining any of the POC forums they should contact PoC@aemo.com.au. A pre-briefing was also offered to new stakeholders prior to the next Consumer forum.
Craig Memery (PIAC) questioned whether Tim has any updates on AEMO and participants’ readiness of metering for December 1 2017? Tim Sheridan advised that they are on-track for this Go-Live date of 1 December 2017. Reports on the POC program are available on the AEMO website.
Jennifer Brownie (QUEN) questioned whether there has been any further discussions regarding any participants who are not able to make the 1 December 2017 date. Specifically whether they will be fined and whether there would be costs passed onto consumers. Tim commented that this is an issue that the AER is responsible to look into.
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Other Business
No other business was raised.
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Meeting Close
Next meeting is scheduled for Friday 4 August 2017.
Items raised at meeting 10
Item
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Topic
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Action required
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Responsible
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By
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10.3.1
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South Australia recent events
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Circulate presentation on system security to the Consumer Forum.
|
Kirsty Camilleri (AEMO)
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4 August 2017
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10.4.1
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Market Information (Traffic light system)
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Discuss the traffic light system proposal with the JSSCs at the NEMEMF.
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Alex Driscoll (AEMO)
|
4 August 2017
|
10.5.1
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Operational Readiness
|
Add the average and maximum demand for each region to slide 18 of the Operational Readiness presentation.
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Damien Sanford (AEMO)
|
4 August 2017
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10.5.2
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Operational Readiness
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Discuss ‘Gas Supply Guarantee’ at the next Consumer Forum.
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Damien Sanford
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4 August 2017
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10.6.1
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AEMO Website
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Discuss the AEMO website at the next Consumer Forum.
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Sandra McLaren
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4 August 2017
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10.7.1
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Forum Review Actions
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AEMO to consider an extraordinary consumer forum to look at upcoming reports – AEMC retail markets, Finkel etc.
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Sandra McLaren
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4 August 2017
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Items raised at previous meetings
Item
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Topic
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Action required
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Responsible
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By
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Notes
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8.6.1
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11.11.2016
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Communications reach - languages other than English
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Discuss with Stakeholder Ian Maitland regarding best strategies for communicating with stakeholders who speak a language other than English.
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Stuart Allot (AEMO)
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3.2.2017
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Closed – this is not currently being looked into by ECC.
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9.3.1
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3.2.2017
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Strategic Initiative – Data & Information Engagement Plan
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Energy Consumers Australia are working on a stakeholder map that would allow stakeholders to understand the roles of participants and other stakeholders, as well as where they are situated, and asked if AEMO’s data initiative could feed into the ECA project by way of provision of data and information. Luke agreed that this is a possibility, and will work with Craig to discuss the project in more detail.
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Luke Barlow (AEMO)
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12.5.17
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In Progress
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9.3.2
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3.2.2017
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Energy Sector Calendar
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AEMO will work with ECA on their project to coordinate an energy sector calendar by keeping them updated on any changes to AEMO's industry meeting schedule.
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Stakeholder Relations (AEMO)
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28.2.17
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Completed – Ongoing weekly update is being provided to ECA.
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9.8.1
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3.2.2017
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Standing agenda item
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Add PoC updates as a standing agenda item.
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Stakeholder Relations (AEMO)
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28.2.17
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Completed - Added to May agenda, and will remain as a standing item in future.
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CONSUMER FORUM – 17 MAY 2017 - MINUTES
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