"The Australian Energy Regulator is disappointed by today's Federal Court decision to dismiss the AER’s case regarding Queensland generator Stanwell Corporation Limited in relation to alleged breaches of the National Electricity Rules," AER chairman Andrew Reeves said today.
The Australian Energy Regulator instituted proceedings against Stanwell on 28 July 2009 alleging that Stanwell had breached the good faith provision of the National Electricity Rules.
Generators like Stanwell are required to offer to supply energy into the National Electricity Market in good faith. The Australian Energy Market Operator accepts offers from generators and dispatches those generators in order of least cost to meet demand.
Rebidding allows generators to alter these offers in response to changes in circumstances. The good faith provision of the National Electricity Rules requires a generator to honour its offer to the market unless there is a change in the material conditions upon which the offer was based.
Rebids that are not made in good faith can adversely affect the accuracy of information upon which market participants rely.
“This provision was designed to improve the reliability of information, including price forecasts, that is necessary for the efficient operation of the wholesale electricity market. We will closely examine the judgment and consider the implications,” Mr Reeves said.