The Australian Energy Regulator (AER) today published the Enhanced Wholesale Market Monitoring and Reporting Guideline and accompanying Explanatory Statement.
This Guideline replaces our previous Wholesale electricity market performance monitoring – Statement of Approach, combining our approach to wholesale electricity and gas market monitoring and reporting into a single document.
The Guideline sets out the AER’s general approach to its enhanced functions in monitoring the wholesale gas markets and electricity and gas contract markets, and has been finalised following stakeholder feedback on the Draft Guideline. The accompanying Explanatory Statement provides further information on feedback raised by stakeholders during consultation on the Draft Guideline.
Visibility of market contracting behaviour will help us to assess whether the outcomes in wholesale markets reflect effective competition in those markets, whether wholesale markets are operating efficiently, and how retail markets are impacted by wholesale markets.
As the next stage in implementing our enhanced powers, we are developing draft information collection instruments and will seek stakeholder feedback in due course.
Background
One of the AER’s key functions is to monitor and report on the performance of wholesale markets.
We deliver on this via a range of public reports on the performance of wholesale markets that provide timely information underpinned by expert and transparent analysis.
Our regular reporting exists to provide confidence in our energy systems, support efficient decision making by market participants, and enable well-informed decision making by policy makers.
To date, we have relied primarily on public information to assess the performance of wholesale energy markets. This information provides us with an understanding of market participants’ conduct, and outcomes of the wholesale markets. However, publicly available information provides very limited visibility of participants’ contracting behaviour.
Through the collection and monitoring of contract related information we will build a more holistic view of wholesale energy markets which will significantly improve our capability to evaluate performance, competition and efficiency in these markets.