Submissions are now open on draft amendments to the guidelines that describe how compensation may be determined following the application of an administered price period.
The amendments to the compensation guidelines are required following recent updates to the wholesale demand response mechanism (WDRM) rule and fast frequency response market ancillary service rule .
Administered price caps and administered floor prices help to reduce volatility and manage risks for market participants, but in rare cases may cause losses for market participants. The National Electricity Rules (NER) allow compensation for such losses in some circumstances.
The draft amendments to the compensation guidelines also include clarifying that compensation may apply to the two new types of fast frequency response market ancillary services.
Submissions on the draft amended compensation guidelines and explanatory statement close on 7 October 2021.
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