The AEMC has made a final 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 final rule removes the prohibition on businesses participating in the market while under external administration. Instead, it establishes a set of factors that AEMO must consider in deciding whether a market participant under external administration can continue trading in the NEM.
In addition, the final 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 final rule allows AEMO to suspend one or more of a market participant's activities, while allowing it to continue to participate in other activities.
By clarifying AEMO’s discretion, the final rule aims to reduce the potential for financial instability in the market.