Review of Margin_Peak and Margin_Off-Peak - Market Evolution Program
Title: Review of Margin_Peak and Margin_Off-Peak – Market Evolution Program
Date First Published on the IMO Website: 23 January 2012
Closing Date: 5:00pm Friday 10 February 2012
Current Status: The consultation period is now closed.
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 Evolution Program (MEP) Rule Change Proposal: Competitive Balancing and Load Following Market (RC_2011_10) proposes significant changes to the provision of Load Following Ancillary Services (LFAS) in the WEM. These changes, which have a proposed implementation date of April 2012, require the determination of alternative margin values as the availability payments to Verve Energy will no longer include compensation for the provision of LFAS.
The IMO has engaged has engaged Sinclair Knight Merz (SKM MMA) to perform a review of the margin values to apply under the proposed new market arrangements for the periods:
from the commencement of the Balancing and LFAS Markets until June 2012; and
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.