Rule Change: Open

Overview

On 4 April 2019, the AEMC initiated the rule making process for the rule change request on the Threshold for participant compensation following market intervention submitted by AEMO.
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On 4 April 2019, the AEMC initiated the rule making process for the rule change request on the Threshold for participant compensation following market intervention submitted by AEMO.

The rule change request concerns a $5,000 threshold which currently limits the amount of compensation payable to affected participants (being participants whose dispatch targets are impacted by a RERT activation or direction). The threshold also applies to additional compensation claims by directed participants (those directed to provide services by AEMO).

At present, the threshold applies per trading interval. AEMO proposes that it should instead apply per intervention event, rather than per trading interval. This is on the basis that the current approach creates a risk that participants will be out of pocket if the amount of compensation owed to them does not exceed the threshold in a given trading interval.  Particularly where intervention events are lengthy (comprising many trading intervals), the application of the threshold in its current form could result in participants incurring loss.

This rule change request is being progressed as part of the AEMC’s investigation into intervention mechanisms and system strength in the NEM. Further information on this can be found here

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Documentation