The AEMC today finalised amendments to the guidelines for compensation following the application of an administered price period.
The changes incorporate the wholesale demand response mechanism (WDRM) rule and fast frequency response market ancillary service rule.
Administered price caps and administered floor prices help to reduce volatility and manage risks for market participants, but in rare cases may cause losses for market participants. The National Electricity Rules (NER) allow compensation for such losses in some circumstances.
The amendments to the compensation guidelines also clarify that compensation may apply to the two new types of fast frequency response market ancillary services.
The amended compensation guidelines and WDRM rule will take effect on 24 October 2021.
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