From 1 November 2026, the NMI Service Provider will be able to create and maintain a secondary settlement point NMI at an address with an existing Primary Connection Point. This newly created role can facilitate the separation of flexible and passive loads, enabling access to additional value streams and market opportunities for both large and small customers.
ENM Solutions will become an AEMO accredited NMI Service Provider to provide this service for you and your clients.
Following the AEMC's "Unlocking CER benefits through flexible trading" rule change, the responsibility for NMI Creation and Maintenance at Secondary Settlement points was a well debated topic, with the original proposed Draft Determination placing this with the Distribution Network Service Providers (DNSPs). However, through the consultation period that lead to the Final Rule published on 15 August 2024, this responsibility led to the creation of a new role, the NMI Service Provider. The NMI Service provider will perform services very similar to that of the existing Embedded Network Manager (ENM) role, which has placed ENM Solutions well to incorporate this offering within our existing services. Our team will utilise our market leading systems and service to provide further value to new and existing clients. For more information about the CER Rule change and it's other areas of focus, read our 2024 insight article, HERE.
Secondary Settlement Points are an opportunity for Large Customers to separate flexible and passive loads, enabling access to value streams through market settlement via wholesale and ancillary services. Small customers will also be able to realise new value opportunities. The rule change will allow for a metering installation to be installed within the premises of an end user by a market participant and be classified as a 'Secondary Settlement Point'; although more than one secondary settlement point may be installed at one premise. Large customers may utilise a different Financially Responsible Market Participant (FRMP), while for small customers, the FRMP must be the same at the Primary and Secondary Settlement point. This change will enable Small Resource Aggregators (SRAs), CER and Virtual Power Plant providers to access the market without the need for an embedded network configuration, which will enable better fit for purpose regulation and electrical configurations.
While arrangements involving Secondary Settlement points will not utilise an Embedded Network arrangement, a second NMI will still be required for the same site to identify the Secondary Settlement Point from the Primary Connection Point. The creation and maintenance of the secondary connection point NMI will be the responsibility of the appointed NMI Service provider, much the same as an Embedded Network Manager would for a Child NMI. The NMI Service Provider role will be an appointment made by the FRMP of the secondary connection point.
Currently, similar arrangements would require a site being established as an Embedded network to allow for creation of Child NMIs within the market behind a Parent NMI. However, often these arrangements would not involve supply or sale of energy to a third party, resulting in configurations and regulation that was not fit for purpose and barriers to entry that were arguably not aligned to the value streams in question. Under the new requirements, secondary settlement points and NMI's may be placed on site that do not require this conversion to occur, resulting in less barriers and more fit for purpose site configurations.
Under their implementation requirements following the AEMC’s rule change, the AEMO has provided the below indicative timeline for stakeholders to follow:
As with all new market opportunities and innovation, the hardest steps are often the first ones, but also those that provide the greatest reward. Our established market systems and experience managing and maintaining NMI’s within the market as the largest independent ENM in the NEM, will ensure your first steps give you the greatest chance of success.
Utilising the skills and experience of an expert provider,remove the need for additional accreditation and knowledge to be brought on,reducing your costs and barriers to innovation and early adoption.
Reach out to our team to discuss how Secondary Settlement Points may be an opportunity for you, and where we can add additional value throughout your journey, so you’re ready to go in 2026.
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Should you or a project you are involved with be interested in discussing how a NMI Service Provider arrangement for Secondary Settlement points could work for you, including considering of an Embedded Network arrangement, please contact us for an informed discussion.
We’ll get back to you within 2 business days.
We’ll get back to you within 2 business days.
