The AEMC is pleased to announce the appointment of Greg Zooeff to the Settlement Residue Committee as the new retail customer representative.
Mr Zooeff is currently the Regional Energy Portfolio Manager for Nyrstar Australia, which operates energy-intensive metals processing facilities in Tasmania and South Australia. He has relevant qualifications in chemical engineering, business and finance and has substantial experience representing energy end users in Australia, including for Tasmania’s Minerals and Energy Council, the Energy Users Association of Australia and Major Energy Users.
The appointment of the Settlement Residue Committee retail customer representative was made following the AEMC’s request for nominations from Major Energy Users and the Energy Users Association of Australia.
The Settlement Residue Committee
Under the National Electricity Rules, the Australian Energy Market Operator must establish the Settlement Reside Committee and the AEMC is required to appoint a person to represent retail customers on the committee.
The Settlement Residue Committee provides oversight and governance of settlement residue auctions including approving amendments to auction rules and the costs and expenses incurred by AEMO in conducting the auctions.
Settlements residue auctions
Regions of the national electricity market have different levels of demand and differently priced generation, which leads to different wholesale prices. Price separation between regions occur when there is not enough interconnector capacity to equalise the spot price between a lower and a higher priced region.
In these cases, AEMO collects more money in the higher prices region (from consumers) than it needs to pay to the generators in the lower priced region. That money is called the settlements residue.
AEMO auctions the rights to a share of this settlements residue on a quarterly basis, which provides auction participants with an additional hedging tool to help manage inter-regional price risk.
Media: Prudence Anderson, Communications Director. 0404 821 935 or (02) 8296 7817