As the transition progresses and technology rapidly changes, the structure and regulation of the National Energy Market must adapt. There is currently no way to distinguish if a generators reason for rebidding is legitimate or if it is simply to increase profit. This leaves consumers exposed to continuing risk of market manipulation and higher than necessary energy costs.
That’s why our response to the AER’s consultation paper on updates to the Rebidding and Technical Parameters guideline highlights some fundamental issues including the use of algorithm- and artificial intelligence-produced bids, with recommendations including:
- Further investigation by the AER, including monitoring the risk of implicit collusion associated with AI bidding and rebidding, and;
- A rule change proposal to give the AER adequate powers to identify and police market manipulation through rebidding and related practices.
What’s next?
The AER will deliver draft recommendations after it reviews of all the submissions responding to the consultation paper. Several other reforms to the wholesale energy market are being considered and we are investigating alternative market structures which are better able to guarantee the lowest cost energy for consumers in a renewable energy future.
