The AER has released its approach to wholesale electricity market monitoring. The approach will guide the first comprehensive long-term monitoring report of the wholesale markets and help inform advice to the COAG Energy Council on the effectiveness of competition and the efficient operation of the National Electricity Market. We have also released our focus for the 2018 performance report, which we will deliver in December 2018. From time to time we may also publish additional working papers and consultation documents on elements of our approach. These are available under updates.
Background to development of our approach
We published a discussion paper on 31 August 2017 that outlined options for how we would approach wholesale market monitoring and invited submissions on these options by 13 October 2017. We also held a public forum on 6 October 2017 to listen to stakeholders' views on the issues raised in our discussion paper.
On 20 December 2017, based on the Discussion paper and consultation with stakeholders, the AER published :
- An Update and consultation paper - This outlined our responses to stakeholder submissions on our discussion paper.
- A draft Statement of Approach - This described, in broad terms, the general approach we will take towards fulfilling our wholesale electricity market performance monitoring functions.
- A draft 2018 Focus - This identified the areas we will focus on for the 2018 performance report, and the tools and measures we will use.
We invited interested parties to respond to the issues raised in the draft Statement of approach and 2018 Focus by providing us with written submissions. Comments on this paper have now closed.
After reviewing stakeholder submissions, we published our final Statement of approach and 2018 Focus in March 2018.
On 15 June 2018, we released our first working paper: Staff working paper on 2018 approach to LCOE analysis. The paper contained technical discussion around the expected use of LCOE and its limitations. Comments on this paper have now closed.