The Australian Energy Market Commission today invited stakeholder submissions on the COAG Energy Council rule change request to revise the compensation arrangements following the application of an administered price cap and administered floor price.

By limiting prices, administered pricing events protect consumers from extended periods of very high prices, while maintaining incentives for participants to supply energy.

This rule change request is in response to recommendations in the AEMC’s previous review of compensation arrangements and proposes to clarify the eligibility criteria, purpose of compensation, and the cost recovery process, while also improving the efficiency and flexibility of the assessment process.

The consultation paper released today sets out the issues that will be considered by the AEMC and seeks stakeholder feedback on the issues raised.

Submissions are due by Thursday 4 June 2015.