The AEMC is seeking feedback on a rule change request from the Australian Energy Market Operator that proposes a new compensation framework for participants who incur loss during a market suspension event.
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’. Market suspension is extremely rare and has only happened twice in the history of the national electricity market.
The aim of the proposed new framework is to allow participants who incur losses during a market suspension to recover their costs. This would encourage participants to work collaboratively with AEMO to restore or maintain supply, rather than wait for a direction from AEMO and then recover any losses through the directions compensation process.
This rule change request relates to a recommendation made by AEMO in its final incident report for the black system event which occurred in South Australia in late 2016.
AEMO proposes that the market suspension compensation framework be based on the compensation framework applicable to administered price periods.
Stakeholder submissions are due by 14 June 2018.
Media: Prudence Anderson, (02) 8296 7817; 0404 821 935