On 8 September 2010, the Commission published its final decision on Synergen Power's compensation claim and the Panel's final report.

The Commission has decided that compensation is payable by AEMO to Synergen Power in respect to its claim and that the amount of compensation payable is $130 486.94, assuming a settlement date of 1 October 2010. The Commission has notified AEMO of the compensation payable to Synergen Power.

Background

Synergen Power Pty Ltd lodged a claim for compensation under clause 3.14.6 of the Rules following the application of the administered price cap during an administered price period in South Australia between 29 January 2009 and 7 February 2009.  Synergen Power claimed compensation for the generation output from its Port Lincoln gas turbine and Snuggery power station, both located in South Australia.

This is the first compensation claim considered by the Commission under clause 3.14.6 of the Rules.  Under this clause, the Commission must determine whether compensation is payable, and if so, the amount of compensation payable.  The Rules require a three member panel (Panel) to assess and provide recommendations to the Commission on the compensation claim. The Panel makes its recommendations on these matters, which the Commission then must take into account in making its decisions.

To support the operation of this clause, the Commission published The Determination of Compensation Following the Application of the Administered Price Cap, Market Price Cap, Market Floor Price or Administered Floor Price Guidelines (compensation guidelines) on 1 July 2009.

Synergen Power provided information in support of its claim, having regard to the requirements in the compensation guidelines, on 18 August 2009.  The Commission then corresponded with Synergen Power to ensure that the information provided in support of its claim, including evidence using normal business documents to verify its claim, was sufficient for the Panel to assess the claim.  The Commission commenced formal assessment of the compensation claim on 24 March 2010.

The Panel, comprising Geoff Swier (Chair), Sibylle Krieger and Bob Graham, was engaged to assess and provide recommendations to the Commission on the compensation claim.  The Panel provided its draft report to the Commission on 14 May 2010.

On 23 June 2010, the Commission published its draft decision and the Panel's draft report on the compensation claim. In its draft decision, the Commission decided that compensation was payable by AEMO in respect to Synergen Power's compensation claim. Written submissions on the draft documents closed on 21 July 2010.

The Panel provided its final report on Synergen Power's compensation claim to the Commission on 18 August 2010.