Market Review: Open
On 30 November 2023, the Reliability Panel (the Panel) released a Directions Paper that presents key findings regarding the changing characteristics of reliability as the national electricity market (NEM) transitions to net zero.
The is reviewing the form of the reliability standard to determine if the current form adequately reflects the changing reliability risk profile, or whether alternatives need to be considered.
The Panel is also reviewing the potential need for a new, more flexible form of the administered price cap (APC) to ensure it remains fit for purpose in the long term.
The Panel is seeking feedback on its key findings and insights
The NEM is undergoing a significant transition. The characteristics and behaviours of the new system need to be understood so that system reliability can be maintained at a level that consumers value.
Since the publication of the Issues Paper, the Panel has been modelling the potential changes to the characteristics of unserved energy as the NEM transitions.
The Directions Paper presents the insights gained from the modelling and seeks stakeholder feedback on the following:
- the results from the simulation modelling and its implications for the form of the reliability standard
- the Panel’s initial views of the value of customer reliability
- shortlisted options for the form of the APC for further consideration in the next stage of the Review.
Submissions are due by 19 January 2024 with other engagement opportunities to follow
Stakeholder feedback on this Directions Paper will be instrumental in laying a strong foundation for the Panel’s decision-making in the next stage of the Review.
The Panel invites feedback from stakeholders in response to this Directions Paper by 19 January 2024.
After the Directions Paper, the Panel will publish a Draft Report in March 2024.
The AEMC has provided the Panel with an amended terms of reference for the review. The final report will now be published in June 2024.