It’s Monday 9th June 2025, which means that yesterday (Sunday 8th June 2025) saw the commencement of the new Frequency Performance Payments (a.k.a. FPP) approach to both:
1) replacement of ‘Causer Pays’ for allocation of Regulation FCAS costs; but also
2) providing a payment (and cost recovery) mechanism for Primary Frequency Response (PFR).
There have already been plenty of articles written about FPP and collated here on WattClarity – but perhaps worth specifically calling out these ‘Two diagrams to help illustrate the changes coming with FPP (Frequency Performance Payments)’ as follows:
Over recent days, Linton’s posted some articles to illustrate (in an anonymised way) some ‘Games that Self-Forecasters Can Play’. With the commencement of FPP:
1) We are not so naïve as to believe that such games will disappear entirely
… after all, we only have to follow the money (in terms of the incentive) to understand what behaviours it might encourage.
2) But we will be interested to see how behaviours change, under this new incentive mechanism.
Early teething issues?
By the way, I’ve not seen any news articles from the AEMO or the AEMC to mark it going live, but did see this morning two Market Notices in quick succession from the AEMO:
1) First there was MN127483 at 00:02
‘——————————————————————-
MARKET NOTICE
——————————————————————-
From : AEMO
To : NEMITWEB1
Creation Date : 09/06/2025 00:02:59
——————————————————————-
Notice ID : 127483
Notice Type ID : MARKET SYSTEMS
Notice Type Description : Status of Market Systems
Issue Date : 09/06/2025
External Reference : INC0145687 – ALERT – Frequency Performance Payments (FPP) Syste
——————————————————————-
Reason :
INC0145687 – ALERT – Frequency Performance Payments (FPP) System
AEMO ELECTRICITY MARKET NOTICE
SERVICE INTERRUPTION – ALERT
AEMO is experiencing a service interruption relating to Frequency Performance Payments (FPP) System.
The service interruption started from 20:25 hrs AEST on 08/06/2025. The participants will experience a delay in receiving FPP factors.
AEMO is working on resolving the issue and will provide updates as more information becomes available.
For further enquiries please contact the AEMO Support Hub
Phone: 1300 236 600
Email: supporthub@aemo.com.au’
2) Then at 01:25 there was MN127484 as follows:
‘——————————————————————-
MARKET NOTICE
——————————————————————-
From : AEMO
To : NEMITWEB1
Creation Date : 09/06/2025 01:25:11
——————————————————————-
Notice ID : 127484
Notice Type ID : MARKET SYSTEMS
Notice Type Description : Status of Market Systems
Issue Date : 09/06/2025
External Reference : INC0145687 – RESOLVED – Frequency Performance Payments (FPP) System
——————————————————————-
Reason :
INC0145687 – RESOLVED – Frequency Performance Payments (FPP) System
AEMO ELECTRICITY MARKET NOTICE
SERVICE INTERRUPTION – RESOLVED
The service interruption relating to Frequency Performance Payments (FPP) System has been resolved.
The FPP System started normal operations from 00:25 Hrs AEST on 09/06/2025
Default Contribution Factors (DCFs) will be used for Regulation Frequency Control Ancillary Service (FCAS) recovery for the trading intervals where CFs were not calculated. No FPP amount will be paid or due for those Trading Intervals.
For further enquiries please contact the AEMO Support Hub
Phone: 1300 236 600
Email: supporthub@aemo.com.au
AEMO IT Duty Manager
——————————————————————-
END OF REPORT
——————————————————————-‘
PS1 notice by AEMO
Worth noting that (in the afternoon of Tuesday 10th June 2025) the AEMO noted this via LinkedIn:
Leave a comment