The National Electricity Rules (NER) and the Australian Energy Market Commission (AEMC) compensation Guidelines outline the process for eligible market participants to claim compensation for losses incurred during an administered pricing period. An administered pricing period occurs when the administered price cap (APC) or administered floor price is applied to manage extreme market conditions.  

Under NER clause 3.14.6, participants can submit compensation claims to recover losses resulting from the application of the APC or administered floor price. The AEMC independently assesses these claims based on the specific APC, floor price, and compensation Guidelines that were in effect during the relevant administered pricing period.  

June 2022 administered pricing event

This page provides information about the compensation process for the administered price periods that occurred in the national electricity market (NEM) between 12 and 15 June 2022.

During the June 2022 event, the following applied:

• Administered Price Cap (APC): $300/MWh
• Administered Floor Price: -$300/MWh  
• Cumulative Price Threshold (CPT):  $1,359,100  
• Market Price Cap (MPC):$15,100/MWh.  

The AEMC's October 2021 version of the Guidelines applies to the assessment and determination of compensation claims for this event.  

The compensation arrangements are designed to maintain the incentive for market participants to continue supplying services during administered pricing periods. It does this by enabling generators and other eligible parties to claim compensation for direct costs and opportunity costs. 

Notice of receipt of claims for June 2022 administered pricing periods

The AEMC has published the following notices of claims.

• Notice of receipt of claims (claims received 23 June - 1 July 2022)
• Notice of receipt of claims (claims received 17 June - 22 June 2022)

You can find more information about making an administered price cap claim.

The AEMC has published final decisions on ten claims to date 

As of 12 September 2024, the AEMC has published final decisions on ten claims for administered pricing compensation following the June 2022 market event.  The Commission’s final decisions can be accessed via the individual claims' pages linked in the table below. The AEMC has now published final decisions on all claims which were not withdrawn.

Eligibility for compensation during market suspension 

For claims covering the market suspension period, the Commission notes that based on the submissions and supporting information provided by claimants to date, claimants are not eligible for administered pricing compensation after the end of the 15 June 2022 trading day. This is because while the market was suspended, the spot price was set according to AEMO’s market suspension pricing schedule and not by the APC.  

In such periods, market participants may be entitled to compensation payments under another scheme that is administered by AEMO. 

Status of claims (as of 12 September 2024)

All administered pricing compensation claims related to the market event in June 2022 have been submitted to the AEMC. Many of these claims were withdrawn by the claimants. The AEMC has published final decisions on all claims which were not withdrawn.  

The AEMC has awarded a total of $35.7 million in compensation.

The table below provides links to individual pages for each claim, where you can find:

• Claim-specific details
• Notifications and updates related to the claim
• The final decision, and if eligible, the total compensation amount