Status of compensation claim: Final decision

Overview 

On 22 June 2022, the Australian Energy Market Commission (AEMC) received notification of a claim for compensation under clause 3.14.6 of the National Electricity Rules (NER) from Shell Energy Retail Pty Ltd following the application of the administered price cap during an administered price period in Queensland between 13 June 2022 and 15 June 2022.  

Shell Energy Retail Pty Ltd claimed compensation for direct costs incurred in operating Oakey Power Station during the administered price period. 

Shell Energy Retail Pty Ltd provided information in support of its claim on 3 August 2022, 7 September 2022 and 17 October 2022. 

Commencement of formal assessment 

On 3 November 2022, the AEMC commenced formal assessment of the direct cost claim made by Shell Energy Pty Ltd under clause 3.14.6(k) of the NER.   

Under the NER, the AEMC has 45 business days to make a final decision in relation to this claim.  

The statutory notice of commencement is published below.  

On 22 December 2022, the AEMC extended the timeframe for making a final decision on Shell Energy Pty Ltd’s direct cost claim until 23 March 2023 due to the complexity of assessing the claim.  

On 23 March 2023, the AEMC further extended the timeframe for making a final decision on Shell Energy Pty Ltd’s direct cost claim until 13 April 2023 due to the complexity of assessing the claim. 

The statutory notices of extension are published below.   

Final determination 

The Commission has determined that $498,871 is payable in relation to the Shell Energy Retail Pty Ltd direct cost claim for administered pricing compensation. The Commission’s final report is published below. 

Note: Shell Energy Retail Pty Ltd made a claim for confidentiality in respect of specific elements of its claim. The basis for seeking confidentiality is that the information is commercially sensitive. The decision document, therefore, redacts this information.