Electricity We are responsible for monitoring, investigating and enforcing compliance the Electricity Law and Rules. This part of the report provides an update on investigations, compliance matters and projects in the electricity market. Rebidding Scheduled generators and market participants operating in the National Electricity Market (NEM) submit offers and bids for each half hour trading interval. The offers and bids include available capacity for up to 10 price bands and can be varied through rebidding. According to the stage process’ introduced in late 2010 and updated in 2012, we will ‘three consider issuing an infringement notice if we issue three notifications within a six month period to generators who submit offer, bid and/or rebid information that does not meet the requirements of the Electricity Rules. The warning count for a participant is set to zero after six months of the first warning being issued. Frequent submission of offers, bids and rebids do not meet the relevant requirements of the Electricity Rules can seriously and adversely impact the NEM. In particular, the quality of information available to relevant participants and other persons is reduced, which in turn reduces market efficiency. Poor quality information also affects the AER's ability to monitor and enforce compliance with the Electricity Rules. As shown below in Figure 7, the number of rebids automatically triggered as requiring initial examination (indicated by the blue area) has fallen markedly since 2011. Figure 7: Rebids auto-triggered and reviewed per week (adjusted) This quarter we received seven self-reporting notices from participants regarding errors in their rebids. We decided not to take action on these errors. As such, no warnings were issued and no participants had their warning count reset to zero during the quarter. Market time A recent review of information provided by some participants revealed inconsistencies in the recording of time. In light of this, we are taking the opportunity to remind participants of the importance of using Market Time (Eastern Standard Time). It is particularly important for those participants with generators located in different regions of the NEM (and therefore different time zones) to be aware of this requirement. Specifically, we expect participants to use Market Time when referring to time in reasons for submitting rebids. This includes, (but is not limited to) for example, the time of an AEMO demand forecast, or the time that an event occurred or an observation was made leading up to the rebid. The same logic also applies to times included in log entries, contemporaneous
Electricity We are responsible for monitoring, investigating and enforcing compliance the Electricity Law and Rules. This part of the report provides an update on investigations, compliance matters and projects in the electricity market. Rebidding Scheduled generators and market participants operating in the National Electricity Market (NEM) submit offers and bids for each half hour trading interval. The offers and bids include available capacity for up to 10 price bands and can be varied through rebidding. According to the ‘three stage process’ introduced in late 2010 and updated in 2012, we will consider issuing an infringement notice if we issue three notifications within a six month period to generators who submit offer, bid and/or rebid information that does not meet the requirements of the Electricity Rules. The warning count for a participant is set to zero after six months of the first warning being issued. Frequent submission of offers, bids and rebids do not meet the relevant requirements of the Electricity Rules can seriously and adversely impact the NEM. In particular, the quality of information available to relevant participants and other persons is reduced, which in turn reduces market efficiency. Poor quality information also affects the AER's ability to monitor and enforce compliance with the Electricity Rules. As shown below in Figure 7, the number of rebids automatically triggered as requiring initial examination (indicated by the blue area) has fallen markedly since 2011. Figure 7: Rebids auto-triggered and reviewed per week (adjusted) This quarter we received seven self-reporting notices from participants regarding errors in their rebids. We decided not to take action on these errors. As such, no warnings were issued and no participants had their warning count reset to zero during the quarter. Market time A recent review of information provided by some participants revealed inconsistencies in the recording of time. In light of this, we are taking the opportunity to remind participants of the importance of using Market Time (Eastern Standard Time). It is particularly important for those participants with generators located in different regions of the NEM (and therefore different time zones) to be aware of this requirement. Specifically, we expect participants to use Market Time when referring to time in reasons for submitting rebids. This includes, (but is not limited to) for example, the time of an AEMO demand forecast, or the time that an event occurred or an observation was made leading up to the rebid. The same logic also applies to times included in log entries, contemporaneous
Quarterly%20Compliance%20Report%20April%20-%20June%202017.docx