On 22 June 2023, the AEMC received notification of a claim for compensation under clause 3.14.6 of the National Electricity Rules (NER) from EnergyAustralia Ecogen Pty Ltd (EA Ecogen). This followed the application of the administered price cap during an administered price period in Queensland, New South Wales and Victoria between 12 June and 15 June 2022.  

EA Ecogen is claiming compensation for direct costs and opportunity costs incurred in operating its Newport Power Station and Jeeralang Power Station during the administered price period.  

EA Ecogen provided information in support of its claim on 3 November 2023.  

Commencement of formal assessment  

On 16 May 2024, the AEMC formally commenced assessment of the claim made by EA Ecogen under clause 3.14.6 of the NER. The statutory notice of commencement is published below.   

Under the NER, the AEMC has 35 business days to publish the claimant’s proposed methodology for determining its opportunity costs, the draft opportunity cost methodology the AEMC proposes to use in determining those costs, and an invitation for written submissions to be made to the AEMC on the draft opportunity cost methodology.   

Consultation  

In accordance with the NER, the AEMC published its draft opportunity cost methodology on 27 June 2024 for EA Ecogen’s opportunity costs claim. The AEMC concurrently assessed compensation claims for both EA Ecogen and Origin Energy, and the draft opportunity cost methodology addresses both claims.

The AEMC invited stakeholders to submit their feedback on the draft opportunity cost methodology. Submissions closed on 25 July 2024. The AEMC received one submission, which is published below, as well as confidential supplementary information from EA Ecogen.

In accordance with the NER clause 3.14.6(r), the AEMC is required to consult with the claimant before making its final decision. In satisfying this requirement, the AEMC provided a draft decision to EA Ecogen on 15 August 2024. The draft decision is not published as it is intended to facilitate consultation between the claimant and the AEMC only.

Final decision  

On 12 September 2024, the AEMC published its final decision regarding EA Ecogen's compensation claim for both direct and opportunity costs incurred during the 14 June and 15 June 2022 trading days.  

For more information, see the final decision document published below.  

Note: EA Ecogen requested confidentiality for specific elements of its compensation claim, asserting that the information is commercially sensitive. In accordance with that claim, the published decision document redacts the confidential information to protect those interests while maintaining transparency to the extent possible.