Wholesale energy market dispute resolution - Electricity

Chapter 8 of the National Electricity Rules (NER) sets out a framework for dispute resolution.  This applies to matters outlined in Chapter 8 as well as other matters referred to Chapter 8 from elsewhere in the NER such as scheduling errors.

There are two stages, stage 1 dispute management system (DMS) and stage 2 adviser process and dispute resolution panel process. Within each participant organisation there is an obligation to have a DMS contact to act as an interface and resource to assist with disputes. These contacts are listed on the DMS contacts page.

Stage 1 DMS, is designed to enable participants to negotiate to resolve issues commercially. It also provides a mechanism to allow for escalation if required within prescribed time periods.  In stage 1, the wholesale energy market dispute resolution adviser (WEMDRA), is available to assist by facilitating any meetings, arranging a facilitator or a mediation, or non binding expert view of the issues in dispute.

Stage 2 provides the opportunity for the issue to be decided by an expert, or panel of experts known as a dispute resolution panel (DRP).  These experts are drawn from a pool maintained for that purpose. It  also allows for escalation to the adviser process where the WEMDRA can assist in preparing a matter for a DRP (or in some cases arrange complete resolution). 

Scheduling errors are compensated through a payment from the participant compensation fund.  In many cases AEMO declares a scheduling error and the use of a DRP is to ensure probity and transparency for any payment from that fund.  There is a fast track process for applications where there are no outstanding issues.  A comprehensive note outlines the process for different types of scheduling errors- guidelines and application for compensation for a scheduling error.

Chapter 8 NER - user material

Overview flowchart for dispute resolution under Chapter 8 of the NER ( PDF 645.47 KB )

Guidance notes for a dispute management system under the NER ( PDF 798.76 KB )

Model DMS under the NER ( PDF 608.74 KB )

Stage 1 - dispute management system referral notice ( PDF 672.09 KB )

Stage 2 dispute resolution practice notes ( PDF 1.05 MB )

Stage 2 - adviser referral notice ( PDF 572.23 KB )

Contract for a Dispute Resolution Panel (electricity) ( PDF 526.09 KB )

Evaluation of dispute resolution panel ( PDF 315.14 KB )

Guidelines and application for compensation for a scheduling error ( PDF 721.59 KB )