2009 Margin_Peak and Margin_Off-Peak Review: Consultation on Fuel Price Assumptions

Title: 2009 Margin_Peak and Margin_Off-Peak Review: Consultation on Fuel Price Assumptions

Date First Published on the IMO Website: 16 October 2009

Closing Date: 12:00pm Thursday 29 October 2009

Current Status: Consultation open.

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 for Ancillary Services provided to the Wholesale Electricity Market (WEM).

In determining the margin values the following must be considered:

• the margin the Electricity Generation Corporation could have been expected to earn on energy sales forgone due to the supply of Spinning Reserve during Peak and Off-Peak Trading Intervals; and
• the loss in efficiency of the Electricity Generation Corporation Registered Facilities that System Management has scheduled to provide Spinning Reserves.

The Market Rules require the Economic Regulation Authority (ERA) to determine the margin values for every Review Period (a three year period from 1 July 2010 – 30 June 2013) in accordance with the methodology set out in clause 2.23.12(d)(i) and 2.23.12(d)(ii) of the Market Rules.  The IMO and ERA have jointly appointed a contractor to perform the review of margin values. 

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