The Public Utilities Office is undertaking a review to develop advice for the Minister for Energy on improving reserve capacity pricing arrangements in the Wholesale Electricity Market. This advice will examine the suitability of implementing an auction to determine capacity pricing, as well as other appropriate alternative pricing arrangements.
Any new capacity pricing arrangements to be considered must be fit-for-purpose, cost effective, and based on a more dynamic and responsive pricing mechanism to ensure electricity consumers do not pay more than necessary for sufficient capacity to meet reliability requirements for the electricity system.
The Public Utilities Office will provide its advice to the Minister for Energy by early October 2018.
On 22 August 2018, the Public Utilities Office published a Draft Recommendations Report outlining its proposed recommendations on potential reforms to the reserve capacity pricing arrangements. This report is available below and submissions on the proposed recommendations are invited by 19 September 2018.
On 9 April 2018, the Public Utilities Office published a consultation paper on alternative approaches to a capacity auction that could be used to achieve a more responsive pricing of capacity resources. The consultation paper and stakeholder submissions received in response are provided below.
All enquiries on this project can be directed to the Project Lead, Bobby Ditric, on (08) 6551 1124 or email [email protected].