Amongst the multitude of communications streaming from various energy sector stakeholders during this ‘2022 Energy Crisis’ (and fully acknowleding that WattClarity has also added to that load) I’ve only just become aware late this evening of this Media Release from the AEMC today:
Eligible participants have five business days to notify the AEMC of their intent to claim compensation
The Australian Energy Market Commission (AEMC) reminds participants who incurred costs during the administered pricing period to notify the AEMC and the Australian Energy Market Operator (AEMO) of their intent to make a claim within the statutory timeframe.
Now that the administered price cap is not effective with the commencement of market suspension schedule prices, the clock has started ticking for participants who want to make a claim for compensation for direct or opportunity costs incurred during that period.
Eligible claimants have five business days – until Wednesday 22 June (inclusive) – to notify the AEMC and AEMO in writing.
The claimant’s written notification must include:
- the administered price period(s) for which the claim relates
- the region(s) in which the administered price period applied
- information on the general nature of the claim
- whether the claim is a:
- direct cost only claim or
- a claim for both direct costs and opportunity costs or
- only opportunity costs
To be eligible for compensation participants’ total costs must have exceeded their total revenue from the spot market (i.e., incurred a net loss).
This is an important first step parties must take if they want to make a claim. The remaining steps in the process are as follows:
Step Two: After receiving the notification to make a claim, the AEMC will publish a notice of receipt. The AEMC will then seek information from the claimant that is considered reasonable to enable assessment of the claim. If the claim includes opportunity costs this means asking for the methodology used to determine those costs.
Step Three: The claimant subsequently provides information to substantiate their claim. The onus is on the claimant to provide evidence and justification. There is no set time period for this step.
Step Four: The AEMC will commence formal assessment of the claim as soon as practicable after receiving sufficient information from the claimant. A notice will be published that a formal assessment has started.
Step Five: The claimant will be notified of the outcome as soon as practicable, noting that the compensation processes differ depending on whether the claimant is seeking direct costs only, or also opportunity costs.
The APC compensation guidelines can be accessed here.
For more information please contact firstname.lastname@example.org.
For media inquiries please contact: email@example.com
Given the tight timing of the process (and this earlier article about the two different compensation processes), I thought it would be useful to reinforce this AEMC communication to our WattClarity readership.