COAG Decision Regulation Impact Statement – Australian Energy Market Commission
On 19 December 2019, the Australian Energy Market Commission (AEMC) released the final rule determination and final rule titled National Electricity Amendment (Threshold for Participant Compensation Following Market Intervention) Rule 2019.
The final rule relates to the compensation framework which operates to ensure participants who have been directed by the Australian Energy Market Operator (AEMO) to provide services are not "out-of-pocket". This framework also compensates participants affected by the intervention in order to put them in the position that they would have been in but for the direction or other reliability and emergency reserve trader (RERT) activation.
On 17 December 2018, AEMO submitted a rule change request seeking to amend the $5,000 per trading interval threshold below which compensation is not payable to affected participants, and below which additional compensation cannot be claimed by directed participants.
The final rule determined by the AEMC:
- amends the National Electricity Rules (NER) so that the $5,000 threshold for additional compensation claims by directed participants will be applied per direction, rather than per trading interval, and
- amends the NER so that the $5,000 threshold for both automatically calculated affected participant compensation and additional compensation claims/disputes by affected participants will apply per intervention event, rather than per trading interval.
The final determination has been assessed by the Office of Best Practice Regulation as compliant with requirements for a Council of Australian Governments Consultation RIS.
Please note: the final determination and rule are web accessible in PDF only and any accessibility queries should be directed to the Australian Energy Market Commission.