Under clause 3.8.10(g) of the National Electricity Rules, the Australian Energy Market Operator (AEMC) is required to review AEMO’s management of negative inter-regional settlements residues. This clause was introduced under the Arrangements for Managing Risks Associated with Transmission Network Congestion rule change request. This rule change request was based on a recommendation from the AEMC’s Congestion Management Review, which was completed in 2008.
The scope of the review covered the:
- efficiency of AEMO’s current policy and practice of managing negative IRSRs, including the ‘clamping’ of negative IRSRs when their value reaches $100,000; and
- appropriateness of the $100,000 intervention threshold.
Issues paper
On 31 May 2013 we made a submission in response to the AEMC’s issues paper released on 18 April 2013. The submission highlighted our recent work on short term solutions to congestion issues.