2011 Margin_Peak and Margin_Off-Peak Review – Assumptions

Title: 2011 Margin_Peak and Margin_Off-Peak Review – Assumptions

Date First Published on the IMO Website: 6 October 2011

Closing Date: 5:00pm Thursday 20 October 2011

Current Status: The consultation period is now closed. The IMO is due to provide the revised Margin Values to the ERA by 30 November 2011.

Background: The Wholesale Electricity Market Rules (Market Rules) use Margin_Peak and Margin_Off-Peak values (margin values) in its settlement calculations to determine the amount the Independent Market Operator (IMO) is required to pay Verve Energy for Load Following and Spinning Reserve Ancillary Services provided to the Wholesale Electricity Market (WEM).

The Market Rules requrie the Economic Regulation Authority (ERA) to determine values for Margin_Peak and Margin_Off-Peak for each financial year in accordance with the methodology set out in clause 3.13.3A(a). Under clause 3.13.3A(a) the IMO must submit a proposal for these values to the ERA by 30 November each year for the following financial year.

The IMO has engaged Sinclair Knight Merz (SKM MMA) to perform a review of the margin values for the 2012/13 financial year. SKM MMA has prepared a draft Assumptions Report outlining the methodology and input assumptions proposed for this review. A modified version of this report, which excludes confidential Market Generator details, has been published for public consultation.

Documents relating to this consultation

Submissions received during public consultation period