2017 Energy Price Limits Review
In this section
In this section
- AEPC_2019_11: Prudential Requirements – Credit Limit Calculation
- Draft Report: 2020 Benchmark Reserve Capacity Price for the 2022-23 Capacity Year
- AEPC_2019_09: Formalisation of the Process for Maintenance Applications
- 2019 Energy Price Limits Review
- AEPC_2019_06: Removal of Resource Plans and Dispatchable Loads
- AEPC_2019_04 Dispatch
- AEPC_2019_07 Ancillary Services
- AEPC_2018_03 Communication and control systems
- AEPC_2019_08 Power System Security
- AEPC_2018_05: IMS Interface
- AEPC_2018_06: Commissioning Tests
- AEPC_2019_02: Medium Term Projected Assessment of System Adequacy
- AEPC_2018_01: Monitoring and Reporting Protocol
- TR_2018_01: Tolerance Ranges
- AEPC_2019_03: Reduction of prudential exposure in the Reserve Capacity Mechanism
- AEPC_2019_01: Short Term Projected Assessment of System Adequacy
- AEPC_2018_04: Facility Outages
- Draft Report: 2019 Benchmark Reserve Capacity Price for the 2021-22 Capacity Year
- 2018 Energy Price Limits Review
- AEPC_2018_02: Tolerance Ranges
The Economic Regulation Authority (ERA) has approved AEMO's Final Report, the ERA’s determination is available on their website . The revised Energy Price Limits will commence on 1 October 2017.
Background: In accordance with the Market Rules, AEMO has commissioned a review of the Energy Price Limits for the Wholesale Electricity Market (WEM) in the South West interconnected system. An independent consultant Jacobs, was engaged to assist AEMO with revising the maximum prices by conducting an analysis of the relevant costs and the preparation of a draft report.
Approval of 2017 Energy Price Limits
On 15 June, AEMO provided the ERA with its proposal for the Energy Price Limits for 2017. On 22 June, the ERA identified an issue with the methodology used to discount the operating and maintenance costs. This issue specifically relates to the methodology used to calculate the time value of money with respect to start-up costs. AEMO has undertaken a review of the methodology and confirmed the issue.
Accordingly, AEMO has developed a revised methodology and underlying assumptions in consultation with the ERA. The revised methodology and underlying assumptions have changed the Maximum STEM Price and the Alternative Maximum STEM Price calculated in accordance with the overall methodology set out in clause 6.20.7 of the WEM Rules. The updated proposed values are a Maximum STEM Price of $351/MWh and Alternative Maximum STEM Price of $544/MWh for July 2017.
Accordingly AEMO has updated its proposal for the Energy Price Limits to apply for 2017 and submitted its updated proposal to the ERA on 6 September 2017.
The Economic Regulation Authority approved AEMO’s Final Report on 28 September 2017.
Documents relating to this consultation
- Second Invitation to Provide Submissions (2.08 MB, docx)
- Revised Jacobs’ Draft Report Tracked (2.4 MB, pdf)
- Revised Jacobs’ Draft Report Clean (2.37 MB, pdf)
- Invitation to Provide Submissions (509 kB, pdf)
- Jacobs' Draft Report (1.73 MB, pdf)
- Jacobs' Final Report (1.32 MB, pdf)
The 2017 Energy Price Limits are available on AEMO's website.