The AEMC is reminding market participants that should an event occur, such as an administered price period or a market suspension period, compensation is available for eligible market participants.
Following the events of June 2022, which included both an administered price period and a market suspension period, the AEMC and AEMO embarked on a process to administer compensation for eligible participants who continued to participate in the market during this period.
The AEMC has since taken steps to clearly outline the different types of compensation that are available, and how to apply, should an event occur.
- Compensation is available to eligible market participants who provide relevant services during an administered price period, where the administered price cap (APC) or an administered floor price is applied. Participants eligible to make a claim for administered price compensation are scheduled generators, non-scheduled generators, scheduled network service providers, scheduled loads, ancillary service providers and demand response service providers.
- Compensation is available to eligible market participants who provide services during a market suspension period. Participants eligible to make a claim under this compensation framework include scheduled generators that supply energy, ancillary service providers that supply market ancillary services, and demand response service providers that supply wholesale demand response where it occurs during market suspension pricing schedule periods.
- Compensation is available from AEMO for eligible market participants to recover the costs associated with complying with a direction. Participants who are directed for the following services can be compensated through the directions compensation framework: energy, any market ancillary service, a direct substitute for energy or a market ancillary service, and a service where energy or market ancillary services are provided incidentally, including inertia, voltage control, and system strength.
For more detailed information on compensation options please visit Compensation – administered pricing, market suspension, and directions.
Earlier this month the AEMC self-initiated a review of electricity compensation frameworks in the National Electricity Rules (the Review), to improve the collective functioning of the frameworks, instilling more confidence amongst market participants to ensure electricity supply during market disruption.
The Review is currently open for consultation with any written submissions to be lodged with the Commission by 1 February 2024.
For more information on the Review into electricity compensation frameworks please visit the project page.
Media enquiries: Jessica Rich | 0459 918 964 | media@aemc.gov.au