PIAC responded to the Australian Energy Market Commission (AEMC) draft determination for the rule change ERC0284: Compensation for market participants affected by intervention events.
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.
As this rule change is likely to change the quantum of compensation paid to participants individually and in aggregate, we recommend the AEMC review the impact of these changes following implementation to ensure they are resulting in efficient outcomes for consumers.
