On 13 June 2006 the Australian Energy Regulator released its decision to publish indicators of the impact that transmission networks can have on the rest of the
electricity market. The AER aims to improve the current service standards regime by moving towards a regime that is directly linked to market outcomes.
The first stage in developing the new service standards incentive scheme was the publication of annual reports covering the market impacts of transmission congestion for the financial years 2003-04, 2004-05 and 2005-06. As a second stage, the AER has published its draft decision on a service standards regime aimed at reducing the cost of transmission congestion.
This report covers the market impacts of transmission congestion for the 2006-07 financial year.
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