Type
Sector
Electricity
Segment
Wholesale
Issue date
AER reference
AC 095/12
Contacts

Notice from the Dispute Resolution Adviser:

DMS contacts

I refer to my email of 31 October re compensation for a declared scheduling error in relation to the dispatch of wind farms. Under the National Electricity Rules, Clause 3.16.2(a), Market Participants affected by a scheduling error may apply to a dispute resolution panel (DRP) for a determination as to compensation. The approach to compensation for spot market losses incurred by affected participants in respect of the scheduling error was agreed. My market notice and the link to AEMOs scheduling error report is available on the AER website. On 30 October 2012, I referred the spot market losses component of the application for compensation to a DRP comprising of Peter Gray SC to be heard on 14 November 2012.

Lake Bonney Wind Power Pty Ltd and Woodlawn Wind Pty Ltd (together, 'Infigen Energy') also sought compensation for renewable energy certificate losses (‘REC claim’) incurred in respect of the same scheduling error. This aspect of the claim was not agreed, and on 1 November I wrote to the DMS contacts informing them that I intended to refer it to a three person DRP. On 5 November I informed the DMS contacts that that the consideration of the REC part of the claim will be held in two parts. The first to consider whether a claim for REC’s can be made from the participant compensation fund. If that is successful, the second will consider the quantum of compensation.

On 7 November, I referred the issue of compensation for REC’s to a DRP comprising of Michael Black AC, QC ( chair) Peter Gray SC and Geoff Swier. Infigen Energy and AEMO were the parties. The first part of the REC component of the compensation claim was heard on 14 November 2012, following the spot market losses component.

I will be publishing the documents supporting the application for compensation for spot market losses on the AER web site next week. I will also publish the REC market component together with the determinations once they are made. I am available for discussion on 0411 380 380.

Sincerely

Shirli Kirschner

Resolution Adviser Wholesale Electricity Market
Resolving disputes. Preserving Relationships

Resolve Advisors
PO box 15 Paddington 2021
Sydney NSW