The Australian Energy Regulator (AER) published the Significant price reporting guidelines (Guideline) for monitoring and reporting on significant price outcomes under clauses 3.13.7 and 3.13.7A of the National Energy Rules (Rules).
The Guideline was developed in response to a rule change by the Australian Energy Market Commission (AEMC) in May 2022 to move away from current prescriptive reporting requirements for high price events, to introduce a new ‘principles-based’ reporting framework.
This means rather than producing a detailed report every time there is a market price interval above $5000/MWh, we can more effectively target resources to deliver reporting that will be of higher value to stakeholders.
The Guideline gives us greater discretion and flexibility to tailor reports to the drivers of an event and the prevailing market conditions, which in turn will create more targeted and timely reporting, and better market transparency.
Further information on significant price reporting requirements and background can be found on the AEMC website.
The purpose of the Guideline is to inform interested parties on our approach, criteria and procedures for significant price reporting. Reports prepared under the Guideline explain the key drivers of high energy price events. This assists stakeholders and policymakers to assess whether the market is functioning effectively.