The Australian Energy Market Commission (AEMC) has formally commenced assessment of the first direct cost claim for compensation relating to the administered pricing period that occurred in the National Electricity Market (NEM) in June 2022. The direct cost claim is from Smithfield Power Generation Pty Ltd (Iberdrola).
The AEMC is working with the Australian Energy Market Operator (AEMO) and claimants to seek and verify relevant supporting information in order to assess and determine the compensation payable.
Claims will be assessed and determined in accordance with clause 3.14.6 of the National Energy Rules (NER) and the AEMC compensation guidelines.
The objective of the administered pricing compensation framework is to incentivise generators to supply energy during an administered pricing period.
The framework allows eligible market participants to claim compensation for direct costs and opportunity costs due to the application of the administered price cap during an administered price period. This framework supports efficient market operation during periods of significant and extended volatility while minimising intervention.
The AEMC expects to commence formal assessment of further claims in the coming weeks and the AEMC is continuing to prioritise assessing the claims arising from the June event.
Information about the status of each claim is now available on the AEMC website and regular updates will be provided as each is progressed.
The APC compensation guidelines can be accessed here.
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CONTACT: Georgina Kentwell - 0411 043 964