The National Electricity Rules (NER) require the AEMC to adjust the Market Price Cap (MPC) and Cumulative Price Threshold (CPT) for the National Electricity Market (NEM) in line with the consumer price index.
Accordingly, after applying the specific formulae set out under clauses 3.9.4(d) and (e), and 3.14.1(e) and (f) of the NER, the updated values for the MPC and CPT for the 2014-15 financial year are $13,500/MWh and $201,900, respectively. These updated values, which apply from 1 July 2014, and underlying calculations are available in a ‘schedule of reliability settings’ on our website.
The MPC and CPT form part of the NEM’s reliability settings. The reliability settings aim to balance signals for investment in new generation against the financial risks faced by participants in the wholesale trading sector. Since 1 July 2012, the NER has required the AEMC to annually update the values for the MPC and CPT by applying consumer price index information published by the Australian Bureau of Statistics.
For information contact:
AEMC Senior Director, Anne Pearson (02) 8296 7800
Media Prudence Anderson (02) 8296 7817 and 0404 821 935