The Australian Energy Market Commission (AEMC) has today reminded participants who incurred costs due to the application of the administered price cap before the market was suspended that they have three days left to notify the AEMC and the Australian Energy Market Operator (AEMO) of their intent to make a claim.
Eligible claimants, whose total costs have exceeded their total revenue from the spot market (i.e. incurred a net loss), have until Wednesday 22 June (inclusive) to notify the AEMC and AEMO in writing.
The requirements for a valid claim are as follows;
- The claimant is an eligible party in accordance with 3.14.6(b) of the NER, i.e. a scheduled generator, non-scheduled generator, scheduled network service provider, demand response service provider or ancillary service provider.
- The notice has been sent to the AEMC by the due date, Wednesday 22 June.
- The written notice has been sent to both:
- The notice states the administered price period(s) and price limit event(s) for which the claim relates as per section 3 of the guidelines. (Price limit events(s) refer to the actual trading intervals in which the spot price in a relevant region was either set by the administered price cap or reduced by scaling from an upstream region).
- The notice states the region(s) in which the administered price period(s) and price limit event(s) applied as per section 3 of the guidelines.
- If there are multiple claims within the notice, it should clearly identify which region(s) and price limit event(s) applied to each party.
- The notice states whether the claim is a direct cost claim or a claim that includes opportunity costs. It is possible to claim direct costs and opportunity costs for the same price limit event.
A valid example is as follows;
Party: [Relevant eligible party name]
Category of registered participant: [e.g. scheduled generator]
Region: [e.g. NSW]
Administered price period and price limit event(s) that applied: [Start date and time, end date and time]
Type of compensation: [Direct costs/opportunity costs]
There will be another opportunity to provide a notice of claim when the administered pricing period has ended. This will occur when the seven-day cumulative price falls below the cumulative price threshold.
However, the AEMC recommends that participants who incurred costs during the price limit events where the administered price cap was in place, should provide their notice in this round so that we can commence processing the claim as soon as possible.
The AEMC’s assessment of APC compensation will take into account any other compensation claimants have received, such as compensation due to market suspension pricing schedule periods, AEMO intervention events or compensation for directions.
The APC compensation guidelines can be accessed here.
To lodge a claim or for more information please contact firstname.lastname@example.org.
Contact: Georgina Kentwell - 0411043964