The AER has conducted a review of the current Significant price reporting guidelines (Guidelines) which concluded the current significant price outcome criteria of $5000/MWh is no longer fit for purpose. 

We are inviting feedback on our proposed changes to the Guidelines which primarily relate to the methodology to determine which price outcomes in the electricity wholesale market should be reported on. 

The AER also released a Consultation Paper to accompany the draft Guidelines with key information on the purpose, history, process and next steps.  The consultation paper outlines a proposal to: 

• move from the current fixed price criteria of $5000/MWh to methodology that identifies selected days where the maximum 30-minute price in the NEM markets across all regions is:

  • the highest priced day for each month

  • the next highest priced day in the calendar quarter 

• include the ability for the AER to apply a principles-based approach to determine alternate price outcomes to report on if they are deemed more consequential or important than any of the selected days

• include additional information in the Significant price report.

We engaged Oakley Greenwood to assist our review of the Significant Price Guideline required under cl 3.13.7 of the National Electricity Rules (NER).

Their review of the Guideline can be found below.

We invited submissions from interested stakeholders on the draft Guidelines by close of business on 1 December. 

We received three submissions, which are available below.