PIAC responded to the Australian Energy Market Commission (AEMC) draft determination for the rule change ERC0287: Compensation following directions for services other than energy and market ancillary services.
PIAC supports the draft determination as we consider it will result in a fairer, more efficient compensation process. We consider this process is likely to reduce costs to consumers in the short-term by improving administrative efficiency, and in the long-term by creating a more balanced compensation process that rewards generation and scheduled loads evenly, and encourages the efficient provision of necessary market services.
We recommend a review of the proposed arrangement to require AEMO to notify the directed participant whether or not it determined a compensable service was provided post-implementation to assess how this arrangement is being used and whether it is leading to good consumer outcomes.
We reiterate we support a move towards assessing compensation claims in-house by AEMO and do not support the AEMC requiring an independent expert to assess complex claims above $20,000.
