13 May 2011

Dear Mr Sarcich,

AEMO welcomes the opportunity to provide a response to DPI's Victorian Licensing Arrangements – Issues Paper. AEMO is supportive of DPI's approach to implementing NECF and its associated review of licensing arrangements.

In 2010, AEMO completed a consultation on small scale generation. The results of this can be found in the final report "Small Generator Framework Design," which is available on AEMO's website (see link blow). The principles set out in the Framework Design will guide AEMO's approach to addressing barriers to small generator participation in the NEM in the future. AEMO believes that any potential regulatory oversight of this area should take a national uniform approach. AEMO is currently reviewing the relevant rules and procedural changes that may be required to facilitate this process.

http://www.aemo.com.au/registration/0118-0001.html

AEMO welcomes the opportunity to discuss this matter further with the DPI and/or provide any further technical detail as required.

Yours sincerely,
Terry Grimwade
Executive General Manager, Market Performance