The AEMC has made a draft rule that clarifies the Australian Energy Market Operator’s (AEMO) discretion to suspend market participants from trading in the National Electricity Market (NEM) if they pose a threat to the market’s financial integrity.
The draft rule proposes to remove the prohibition on businesses participating in the market while under external administration. Instead, the draft rule establishes a set of factors AEMO must consider in deciding whether a market participant under external administration can continue trading.
In addition, the draft rule provides a more selective approach to suspension in cases where a market participant has more than one registration – for example as a generator and a retailer. The draft rule would allow AEMO to suspend one or more of a market participant's activities, while allowing it to continue to participate in other activities.
The draft rule would give AEMO greater flexibility in decision-making, with the aim of reducing the potential for unnecessary instability in the market.
The AEMC invites submissions on the draft determination by 20 October 2016.