Under the National Electricity Rules, the AEMC is required to adjust the Market Price Cap and Cumulative Price Threshold for the National Electricity Market, in line with the consumer price index, by 28 February each year.
Using the method set out in the National Electricity Rules, the values for the Market Price Cap and Cumulative Price Threshold for the 2015-16 financial year are as set out below.
|Market Price Cap||$13,500/MWh||$13,800/MWh|
|Cumulative Price Threshold||$201,900||$207,000|
The updated values, which apply from 1 July 2015, and underlying calculations are available in a schedule of reliability settings on the AEMC website.
The Market Price Cap and Cumulative Price Threshold form part of the National Electricity Market’s reliability settings.
The reliability settings aim to balance signals for investment in sufficient generation capacity and demand-side response against the financial risks faced by participants in the wholesale trading sector.
Since 1 July 2012, the National Electricity Rules have required the AEMC to annually update the values for the Market Price Cap and Cumulative Price Threshold by applying consumer price index information published by the Australian Bureau of Statistics.