The Australian Energy Market Commission has released its draft Rule determination for the Application and Operation of Administered Price Periods Rule Change Proposal.


The AEMC is inviting submissions on the draft Rule determination by 1 September 2011.


The Commission has decided to implement the proposed changes. In addition, the Commission has also decided to correct two errors in the Rules, identified during the Rule change process, that relate to the application and operation of the Administered Floor Price, and of the Market Floor Price.



On 4 January 2011, AEMO submitted a Rule change proposal entitled ‘Application and operation of Administered Price Periods'.


AEMO submitted this rule change proposal to address a perceived ambiguity in the National Electricity Rules (Rules) with respect to the application and operation of Administered Price Periods (APPs) triggered by high ancillary service prices.


Specifically, the Rule change proposal proposed to:

  • clarify that an APP, triggered by high ancillary service prices, should commence in the dispatch interval immediately following the dispatch interval in which the sum of the ancillary service prices in the previous 2016 dispatch intervals exceeds six times the Cumulative Price Threshold (CPT);
  • clarify that all ancillary service prices, within a region, will be limited by the Administered Price Cap (APC) during an APP;
  • amend the discretionary provision which enables AEMO, in consultation with AER,  to extend an APP into the next trading day (clause 3.14.2(c)(3)) by either:
          a) deleting clause 3.14.2(c)(3); or
          b) retaining the clause 3.14.2(c)(3) in an amended form where the decision to extend the APP is 
               based on data in the pre-dispatch schedule;
  • extend the time AEMO has to settle compensation for implementation of an APC, Market Price Cap (MPC) or Market Floor Price (MFP) (clause 3.15.10(c)); and
  • make non-material amendments to address inconsistent references to definitions in the Rules and to remove a redundant derogation by: including a reference to ‘dispatch prices' in clause 3.14.1(a); ensuring that only the term ‘ancillary service price' is used rather than ‘market ancillary service price'; and deleting clause 9.45.2 (which sets a unique APC for Tasmania) as it is considered to be a redundant APC derogation.


For further information or to lodge a submission, please go here.