The Australian Energy Market Commissions (AEMC) has extended the period of time for making a draft determination on the proposed Application of Offsets in the Prudential Margin rule change by 11 weeks, from 14 April 2016 to 30 June 2016.

The extra time is needed for the AEMC to fully consider material new information provided by the Australian Energy Market Operator (AEMO) on the financial and risk impacts of its proposed rule change, in AEMO’s submission to the AEMC’s consultation paper (which was published on 10 December 2015) and additional material made available since that time.

The prudential margin is a key component of the National Electricity Market prudential settings, which are used by AEMO to determine credit support for market participants. The prudential margin helps cover the loss that may occur between a participant’s default and its suspension from the market. The National Electricity Rules currently restrict offsetting between trading amounts and reallocation amounts in the prudential margin calculation. This request seeks to change these arrangements to remove this restriction.

Are you interested in taking part in a teleconference with the AEMC in early May?

Agenda: Financial and Risk Impacts of this rule change request.

Registration: Before 28 April 2016

Email Leah Ross on leah.ross@aemc.gov.au