The AEMC has made a final rule that simplifies the process for setting prices if the spot market is suspended, and establishes a simpler, more workable market suspension pricing framework.
AEMO suspends the spot market when the market cannot operate as normal, for example, if there is no electricity supply due to a black system event. In these situations, AEMO must determine the prices which generators are paid, and customers receive, while the issues which led to the suspension are being resolved.
The key features of the final rule are:
- Removal of two market suspension pricing regimes from the National Electricity Rules. These are the neighbouring region pricing and pre-dispatch pricing schedule regimes.
- Allowing AEMO to apply dispatch pricing at any time during a market suspension period if:
- in AEMO’s reasonable opinion, it is practicable to resume central dispatch and the determination of dispatch prices and ancillary service prices, and
- the market was suspended other than in response to a jurisdictional direction. - If AEMO suspends the market in response to a jurisdictional direction, the relevant jurisdiction must agree to a return to dispatch pricing before this pricing regime can apply.
- Harmonising the price scaling provisions applicable during market suspension with the pricing scaling provisions applicable for other administered prices.
The rule starts on 1 December 2017.
Media: Prudence Anderson, Communications Director, 0404 821 935 or DL (02) 8296 7817