AEMC published update on Compensation Claims under APC

Also published recently (this time by the AEMC) was this update on 4th July 2022 of the claims that had been received by the AEMC for compensation under the Administered Pricing Period that had followed the Cumulative Price Threshold being reached in June 2022.

On that page the AEMC noted:

‘The Australian Energy Market Commission (AEMC) would like to thank the energy market participants that have sent in their notices of claims for the administered pricing period that occurred in June.

We have prioritised providing information to the industry about the compensation process and are on track with our preparations for the assessment of claims.

We have published notices on our website and last week sent an information pack to each claimant requesting supporting documentation in order to swiftly begin the assessment process. The information pack included:

(a)  a letter explaining the information requirements
(b)  a checklist
(c)  a direct cost template in Excel, with instructions for populating it.

Next week we will be providing claimants with further guidance on claims involving opportunity costs.

The AEMC would also like to remind the industry that in the event of a future Administered Price Period (APP), the same administered pricing compensation framework will apply. The compensation regime applies to eligible generators who supply energy during administered price periods.

We encourage market participants to continue to bid their capacity available in the market during an APP.

Market participants who incur a net loss would be entitled to claim direct and opportunity costs for any losses during an APP. Those claims would be assessed as a top priority alongside previous APP claims. Eligible claimants have five business days from the end of an administered pricing period to lodge their claims.’

Remembering that this ties in with the broader questions about why capacity was withdrawn under APC (and that there’s at least two theories of what was happening there) it’s interesting to note that there were two notices published, and in particular to see who has lodged a claim:

I trust that sharing this via WattClarity is of value for those who did not see the AEMC update this week.