With the new financial year beginning today, the Market Price Cap (MPC) in the NEM has now increased to $20,300/MWh — up from $17,500/MWh for the previous financial year.
This adjustment is the first of a three-part staged increase to the MPC base rate through to the 2027-28 financial year. The graph below charts the history of the NEM’s MPC in nominal terms (dark blue) and real terms (light blue).
From July 1st 2025, the MPC will begin the first of three scheduled increases.
Source: AEMO MMS, RBA
The Cumulative Price Threshold (CPT) has today also risen to $1,823,600/MWh for the upcoming financial year — set at the equivalent of 7.5 hours of MPC prices. The CPT will increase (towards the equivalent of 8.5 hours of MPC prices) over the next three years as part of the same rule determination.
The AEMC’s final rule determination was made in December 2023, and outlined the progressive increase in the MPC and CPT through to the 2027-28 financial year.
Leave a comment