Wholesale energy market dispute resolution - Electricity

Chapter 8 of the National Electricity Rules (NER) sets out a framework for dispute resolution. This applies to matters outlined in Chapter 8 as well as other matters referred to Chapter 8 from elsewhere in the NER such as scheduling errors.

There are 2 stages, Stage 1 dispute management system (DMS) and Stage 2 adviser process and dispute resolution panel process. Within each participant organisation there is an obligation to have a DMS contact to act as an interface and resource to assist with disputes. Changes should be promptly communicated to the WEMDRA.

Stage 1 DMS is designed to enable participants to negotiate to resolve issues commercially. It also provides a mechanism to allow for escalation if required within prescribed time periods. In Stage 1 the wholesale energy market dispute resolution adviser (WEMDRA) is available to assist by facilitating any meetings, arranging a facilitator or a mediation, or non-binding expert view of the issues in dispute.

Stage 2 provides the opportunity for the issue to be decided by an expert or panel of experts known as a dispute resolution panel (DRP). These experts are drawn from a pool maintained for that purpose. It also allows for escalation to the adviser process where the WEMDRA can assist in preparing a matter for a DRP (or in some cases arrange complete resolution).

Scheduling errors are compensated through a payment from the participant compensation fund. In many cases AEMO declares a scheduling error and the use of a DRP is to ensure probity and transparency for any payment from that fund. There is a fast track process for applications where there are no outstanding issues. A comprehensive note outlines the process for different types of scheduling errors; please refer to the Guidelines and application for compensation for a scheduling error, following.