Following market suspension events in June 2022 and the subsequent compensation assessment processes, issues were identified with the various compensation frameworks, including how they worked together. As a result, the AEMC is reviewing the objectives and methodology, governance, and administrative arrangements of electricity compensation frameworks when applied alone and in combination.
Consultation paper
On 2 November 2023, the AEMC released a consultation paper for its self-initiated review of electricity compensation frameworks in the National Electricity Rules.
The AER made a submission to the consultation paper on 9 January 2024.
AER submission - AEMC Review into electricity compensation frameworks - 9 January 2024
Draft report
On 15 August 2024, the AEMC published a draft report on the review.
The AEMC draft report and its 14 recommendations reform the objectives, methodologies, governance and administrative structures for administered pricing, market suspension, and directions compensation frameworks.
These included recommendations relating to the AER taking responsibility for assessing compensation claims, the clarification and alignment of the timeframes for assessment of compensation claims, and the assessment of benchmark price premiums.
The AER made a submission to the draft report on 11 October 2024.
AER submission - AEMC Review into electricity compensation frameworks draft report - 11 October 2024