The countdown is on for eligible ancillary service providers that incurred a net loss during the application of the administered price cap in South Australia to apply for compensation through the Australian Energy Market Commission (AEMC).

Eligible parties have five business days, from 12:00 am AEDT on 28 November to 11.59 pm AEDT on 2 December 2022, to notify the AEMC and the Australian Energy Market Operator (AEMO) in writing of their intent to make a claim.

AEMO determined that an administered price period commenced at the trading interval starting 1:00 pm on 14 November 2022 in the SA region and ended at the end of the trading interval starting 3:55 am on 26 November 2022.

The administered price cap (APC) of $300/MWh applied to the market ancillary service prices in all trading intervals during this administered price period. The APC only applied to market ancillary service prices in the SA region and did not apply to the spot price for energy.

The requirements for a valid ‘notice’ or intent to make a claim are as follows:

  • The claimant is an eligible party under clause 3.14.6(b) of the NER. Eligible parties in this case are ancillary service providers (including demand response service providers) who provided market ancillary services during the administered price period in South Australia
  • The claimant incurred a net loss. That is, their direct and/or opportunity costs exceeded their total revenue from the spot market over an entire “eligibility period”
  • The notice has been sent to the AEMC and AEMO by the due date, 11:59 pm AEDT, 2 December 2022.
  • The written notice must be sent to both:
  • The notice states the administered price period for which the claim relates and the region in which the administered price period applied as per section 3 of the guidelines.
  • The notice must state whether the claim is a direct cost claim or a claim that includes opportunity costs. It is possible to claim both direct costs and opportunity costs.

A valid example is as follows:

Party: [Registered participant name]

Category of registered participant: [e.g. ancillary service provider]

Administered price period and region in which the administered price period applied: [Start date and time, end date and time] in [e.g. SA]

Type of compensation: [Direct costs and/or opportunity costs]

The AEMC’s assessment of compensation will consider any other compensation claimants have received or are entitled to receive, such as compensation for directions or compensation due to AEMO intervention events.

The APC compensation guidelines relevant to this event can be accessed here.

The process for making an administered pricing compensation claim can be viewed here.

To lodge a notice or for more information please contact applications@aemc.gov.au.

Media: Georgina Kentwell, 0411 043 964, media@aemc.gov.au.