The AER has released a special report on NEM congestion and associated disorderly bidding by generators. The report focuses on the response to recent congestion in central Queensland, New South Wales and Victoria by certain generators. The report highlights how disorderly bidding associated with congestion impacts on the efficiency of the market by limiting interregional trade, distorting economic dispatch and creating price volatility. The AER calls for reforms to be made to market processes to reduce the ability of disorderly bidding to affect market outcomes. The AER considers that the report is relevant to the Australian Energy Market Commission’s Transmission Frameworks Review and the Productivity Commission’s inquiry into Energy Network Regulation.
A submission to the Productivity Commission’s inquiry into Energy Network Regulation was submitted by the AER in March 2013.