NECA: Investigation into the events of 19 and 20 December 2001

On 23 April NECA made an application to the National Electricity Tribunal for breach of the National Electricity Code by Macquarie Generation alleging that Macquarie Generation breached the market rules governing rebidding and the use of despatch inflexibility, or 'must run', bids. Macquarie Generation cooperated with NECA in its investigation of these events and did not contest NECA's application to the Tribunal.

On 2 May, the National Electricity Tribunal:

• declared that Macquarie Generation's rebid constituted a breach of clause 3.8.22 of the code and
• required that Macquarie Generation pay a civil penalty of $10,000 for this breach.

Details of the circumstances which led to this breach of the code by Macquarie Generation are set out in the report of NECA's investigation into the events of 19 and 20 December 2001. That report is available to download.

Commenting on the Tribunal's declaration and order Stephen Kelly, NECA's managing director, said:

"This decision confirms NECA's interpretation of the market rules that generators must bid or rebid despatch inflexibilities only when they are unable to follow despatch instructions due to abnormal plant conditions or other abnormal operating requirements in respect of a scheduled generating unit."

"Our action in pursuing this breach before the Tribunal demonstrates our determination robustly to enforce the market rules. I commend Macquarie Generation for cooperating with us in the conduct of this case and the Tribunal for its rapid decision."

No other comment will be made by either party regarding the Tribunal's declaration or orders.