Rule Changes: Open

Secondary trading of settlement residue distribution units

Reference:
ERC0220
Stage:
Consultation on request for rule change
Proponents:
Westpac Banking Corporation
Project Leader:
Istvan Szabo
Date initiated:
11-Apr-2017
Overview

On 16 December 2016 the AEMC received a rule change request from Westpac in relation to secondary trading of settlements residue distribution units.

On 16 December 2016 the AEMC received a rule change request from Westpac in relation to secondary trading of settlements residue distribution units.

The rule change request would amend the National Electricity Rules (NER) to enable, but not require, the Australian Energy Market Operator (AEMO) to provide a platform for secondary trading of settlements residue distribution units (units).

Trading through the existing auction process  may improve the liquidity of the secondary market and the improved liquidity of units may also increase interstate trade of electricity and increase competition. However, transmission network service providers (TNSPs) may face greater risks that may negatively affect the amount of network charges paid by consumers.

The AEMC has published a consultation paper setting out the issues raised by the rule change request. Submissions on the rule change request are due by 9 May 2017.

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Documentation