On 13 June 2006 the Australian Energy Regulator released its decision to publish indicators of the impacts of transmission networks on the rest of the electricity market. In this decision the AER adopted a two stage process for the improvement of the current service standards regime, by moving towards a regime that was directly linked to market outcomes. The first stage of that process is the publication of three annual reports covering the market impacts of transmission congestion for the financial years 2003-04, 2004-05 and 2005-06.
This report is the second annual report in response to that decision. As a second stage in early 2007, following the completion of all three reports, the AER will consult with the market in order to develop a service standards regime based on the understandings gained through these reports.
The aim of this report is to:
- identify the market impact and causal elements of constraints;
- provide information to participants that will be used as a tool for guiding behavioural decisions, therefore promoting efficient market participant behaviour; and
- provide a tool to develop possible economic incentives.