Administered Pricing begins for FCAS (Lower Reg) in SA at 12:50 on Monday 14th November 2022

Following on from Saturday’s weather-related islanding event in South Australia, an AEMO market notice has been published early this afternoon stating that Administered Pricing is now in effect for FCAS in the SA region.

This comes as the Cumulative Price Threshold (CPT) of $1,398,100 was exceeded. The APC (currently set at $300/MWh) will apply until the cumulative price dips below the threshold. The full market notice is available below:

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MARKET NOTICE
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From : AEMO
To : NEMITWEB1
Creation Date : 14/11/2022 12:50:24

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Notice ID : 103165
Notice Type ID : ADMINISTERED PRICE CAP
Notice Type Description : Administered price periods declared.
Issue Date : 14/11/2022
External Reference : [EventId:185] AP STARTED for market ancillary services in SA1 at 14 November 2022 1250

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Reason :

AEMO ELECTRICITY MARKET NOTICE

Issued by Australian Energy Market Operator Ltd at 1250 hrs on 14 November 2022

ADMINISTERED PRICE PERIOD DECLARED in SA1 region.

AEMO has determined that the rolling sum of the uncapped market ancillary Lower Reg services prices for the SA1 region over the previous 2016 trading intervals has exceeded the cumulative price threshold (CPT) of $1,398,100.00.

In accordance with Clause 3.14.2(b) of the National Electricity Rules, AEMO has determined that an administered price period will commence at the trading interval starting 1300 on 14 November 2022 and will continue through to the end of that trading day.

An administered price cap (APC) of 300 $/MWh will apply to all trading intervals during this administered price period. This APC will apply to all market ancillary service prices in the SA1 region.

AEMO will continue to monitor the rolling sum of the uncapped market ancillary service prices and issue further Market Notices as required.

This is an AEMO autogenerated Market Notice.

Update: As noted by one reader, the APC will apply to all FCAS commodities in SA, not exclusively Lower Reg, as may have been implied.