AEMO publishes update to ‘Guide to Mis-Pricing Information’ in conjunction with IESS

This is another belated and back-dated article, with this one pointing to this 13-page paper ‘Guide to Mis-Pricing Information’ from the AEMO, which:

• Was not approved for distribution and use until 1st August 2024; but
• Had an effective date of 3rd June 2024 (and so publish date here) that was related to the IESS go-live process.

This document relates to several concepts defined in the WattClarity Glossary, including:

1)  Constraint Equations and Constraint Sets … and particularly those related to network congestion;

2)  The ‘Local Price Adjustment’, which:

(a)  is calculated discretely for each (Scheduled and Semi-Scheduled DUID) … but notably not for Non-Scheduled DUIDs;

(b)  from the Marginal Value(s) of a specific subset* of the Constraint Equation(s) that are bound containing that DUID on the LHS

* Readers should be clear that the ‘subset of Constraint Equations’ that we’re referring to here are the sub-set that the AEMO has selected:
i.  as contributing to ‘Mis-Pricing’ for one or more DUIDs
ii.   as a result of them  being identified as related to Network Congestion (as distinct from other reasons also dealt with via constraint equations).

(c)  and so, as a result, taking into account the bid price(s) of each of the DUIDs on the LHS of the same Constraint Equation(s)

3)  The ‘Local Price‘… which we formerly referred to as the ‘CPD Price’.