Quarterly settlement residues and settlement residue auction proceeds

Price separation creates risks for parties that contract across regions. The difference between the price paid in the importing region and the price received in the importing region, multiplied by the amount of flow, is called a settlement residue. AEMO holds quarterly auctions to sell the rights to future residues as a risk management strategy. This figure presents the amount of settlement residues accrued each quarter against the proceeds of residue auction for the past five years. The data table contains data since Q2 2004. This data is always one quarter behind.