The Australian Energy Market Commission today invited stakeholder submissions on potential amendments to the guidelines which describe how compensation is determined if a claim is made by an eligible party following the application of an administered price period.
Administered price caps and administered floor prices help reduce volatility and limit risks for market participants, but in some cases they can cause market participants to incur a loss. The National Electricity Rules provide for compensation in some circumstances where these losses occur. Historically, administered pricing events have occurred rarely.
The AEMC recently made changes to the National Electricity Rules which include transitional arrangements. These require the Compensation Guidelines to be amended to reflect changes to the rule, prior to the commencement of that rule on 29 September 2016. As well as considering these consequential changes, the AEMC also intends to consider whether other aspects of the Compensation Guidelines should be amended.
The consultation paper released today sets out the issues that will be considered by the AEMC and seeks stakeholder feedback on the issues raised.
Submissions are due by Thursday 31 March 2016. Please click here for more information.
For information contact: Media: Communication Manager, Prudence Anderson 0404 821 935 or (02) 8296 7817