Submission to the AEMC Amendment of the market price cap, cumulative price threshold and administered price cap – draft rule determination

PIAC made a submission to the Australian Energy Market Commission’s (AEMC) draft rule change determination on the amendment of the market price cap (MPC), cumulative price threshold (CPT) and administered price cap (APC).

PIAC opposes the proposed increases to the market caps. We are not convinced that there is any expectation that the reliability standard is likely to be breached in the review period (to 30 June 2018) and we are not convinced that consumers are willing to pay the extra cost for the marginal quantum of reliability the changes will bring.

In addition to these positions we raised a number of concerns about the process of the rule change, particularly the AEMC’s management of the stark divide in opinions between consumer advocates and market participants in the process.