August 2026

Audience

Financially Responsible Market Participant See Relevant Rules or Procedures (FRMPs) and Metering Data Providers along with business analysts and IT staff in Registered Participant companies.

Contents

Summary

• The document outlines the technical changes and updates related to the Shortening Settlements Cycle (SSC) project planned by the Australian Energy Market Operator (AEMO) for implementation in 2026. It focuses on settlements, billing, prudentials, data models, and system interfaces to support a more efficient market operation.

• SSC project goal: The SSC aims to reduce the settlement cycle to 9 business days after the billing cycle with a revision cycle of 20 business days, lowering prudential collateral requirements and encouraging market competition.

• Settlement cycle changes: The new cycle advances preliminary statements to business day 3, final posting to day 7, and settlement to day 9, with an R0 revision posted on day 20 and final settlement on day 34, requiring updates to metering, settlements, and clearing calendars.

• Credit limit and prudential updates: Changes include updates to Credit Limit Procedures and a transition plan to new credit support requirements reflecting the shorter settlement cycle and revised accrual calculations.

• Transition timeline: AEMO plans to transition from the current to the shorter settlement cycle between August and October 2026, ensuring participant preparedness and system readiness.

• Markets Portal enhancements: Introduction of a new Security Deposit Management interface for Financially Responsible Market Participants (FRMPs) to manage security deposits, with specified user access rights managed via MSATS. A new cash dashboard will allow participants to view and manage cash positions and instructions.

• Data model and reports: EMMS Data Model version 5.7 will be released with updates including new reports for R0 revisions and potential billing data model changes to incorporate security deposit information. Participants will need to upgrade and adjust subscriptions accordingly.

• APIs and system interfaces: Design is in progress for new API endpoints to manage cash instructions and notifications, facilitating automated and integrated participant interactions with AEMO systems.

• Implementation and participant impact: Participants must review impacts, update systems before production implementation in August 2026, and schedule resources for transition. Pre-production environments will be available from June 2026 for testing and preparation.