CRP0142 – Sunset Power International Pty Ltd (trading as Delta Electricity) compensation claim

CRP0142 – Sunset Power International Pty Ltd (trading as Delta Electricity) compensation claim

Status of compensation claim: Assessing claim for compensation.

Overview

On 30 June 2022, the Australian Energy Market Commission (AEMC) received notification of a claim for compensation under clause 3.14.6 of the National Electricity Rules (NER) from Sunset Power International Pty Ltd (trading as Delta Electricity) following the application of the administered price cap during an administered price period in Queensland, New South Wales, South Australia and Victoria between 12 June 2022 and 23 June 2022.

Sunset Power International Pty Ltd (trading as Delta Electricity) is claiming compensation for opportunity costs only incurred in operating Vales Point power station during the administered price period.

Sunset Power International Pty Ltd (trading as Delta Electricity) provided initial information in support of its claim on 6 December 2022 and, since that time, has provided additional supporting information, including in response to requests for information from the AEMC.

Commencement of formal assessment

On 8 June 2023, the AEMC formally commenced an assessment of the opportunity cost claim made by Sunset Power International Pty Ltd (trading as Delta Electricity) under clause 3.14.6(k) of the NER.

The statutory notice of commencement is published below.

On 20 July 2023 the AEMC extended the timeframe for publishing the claimant’s proposed methodology, the methodology the AEMC proposes to use, and an invitation for written submissions under clause 3.14.6(o) of the NER due to the complexity of the claim.


In accordance with the NER, the AEMC published its draft opportunity cost methodology for Sunset Power International Pty Ltd’s (trading as Delta Electricity) opportunity cost claim.

The AEMC invited stakeholder submissions on the draft opportunity cost methodology on 14 September 2023. Submissions closed on 13 October 2023. The AEMC received three submissions which are linked at the bottom of this page.

The AEMC is currently assessing opportunity cost claims for both Sunset Power International Pty Ltd (trading as Delta Electricity) and Snowy Hydro Limited. The draft opportunity cost methodology discusses both claims.

On 31 October and 20 November 2023, the AEMC extended the timeframe for making a final decision on Sunset Power International Pty Ltd.'s (trading as Delta Electricity) opportunity costs claim under clause 3.14.6(t) of the National Electricity Rules due to the complexity of assessing the claim.

Following consultation with the claimant on the AEMC’s draft decision, on 7 February 2024, the AEMC further extended the timeframe for making a final decision on Sunset Power International Pty Ltd.'s (trading as Delta Electricity) opportunity costs claim until 23 May 2024 due to the complexity of assessing the claim.
 

The statutory notices of extension are published below.  

Title Date
Formal commencement of statutory claim - Sunset Power International Pty Ltd (trading as Delta Electricity) - 8 June 2023 2023-06-08
Opportunity cost methodology 2023-09-14
Notice of extension - 20 July 2023 2023-07-20
Submission - EUAA 2023-10-13
Submission - AEC 2023-10-13
Submission - Delta (late submission) 2023-10-17
Notice of extension 30 November 2023 2023-11-30
Notice of extension 30 November 2023 2023-11-20
Notice of extension - 07 February 2024 2024-02-07
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