CRP0140 – Snowy Hydro Limited compensation claim

CRP0140 – Snowy Hydro Limited compensation claim

Status of compensation claim: Assessing claim for compensation.  

Overview

On 21 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 Snowy Hydro Limited following the application of the administered price cap during an administered price period in Queensland, New South Wales, Victoria and South Australia between 12 June 2022 and 15 June 2022.

Snowy Hydro Limited is claiming compensation for direct costs incurred in operating Colongra (NSW), Laverton (VIC), Valley Power (VIC), Lonsdale (SA), Angaston (SA) and Port Stanvac (SA) during the administered price period.

Snowy Hydro Limited is also claiming compensation for opportunity costs incurred in operating Tumut Three (NSW), Upper Tumut (NSW) and Murray (NSW) during the administered price period. As a result, the claim is not a direct cost only claim.

Snowy Hydro Limited provided information in support of its claim on 26 October 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 direct cost and opportunity cost claim made by Snowy Hydro Limited 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 Snowy Hydro Limited’s 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 Snowy Hydro Limited and Sunset Power International Pty Ltd (trading as Delta Electricity). The draft opportunity cost methodology discusses both claims.

The Commission’s assessment of Snowy Hydro Limited’s direct cost claim will be included in the publication of the final decision.

On 31 October and 20 November 2023, the AEMC extended the timeframe for making a final decision on Snowy Hydro Limited’s direct costs and 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 the final decision on Snowy Hydro Limited’s direct and 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 - Snowy Hydro Limited - 8 June 2023 2023-06-08
Opportunity cost methodology 2023-09-14
Notice of extension - 20 Jul 2023 2023-07-20
Submission - EUAA 2023-10-13
Submission - AEC 2023-10-13
Submission - Snowy Hydro Limited 2023-10-13
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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