AEMC proposes to progressively increase MPC to $22,800/MWh by 1 July 2027 (amongst other changes)

I’m focused on other things today, but worth a quick note about this – because it’s just landed in my inbox and is likely to be of interest to a number of our readers:

It’s only a draft at this time, so the key details for now are as follows…

(A)  Headline changes proposed

The AEMC’s Media Release here notes that:

‘Under these draft rule changes:

>  the Market Price Cap , which sets the price ceiling in the wholesale electricity market, would increase from $16,600/MWh currently to $22,800/MWh by 1 July 2027

>  the Cumulative Price Threshold , which serves as a trigger point to end a sustained seven day period of extreme high prices in the wholesale electricity market, will increase from the equivalent of 7.5 hours at the Market Price Cap to 8.5 hours at the Market Price Cap by 1 July 2027; and

>  the Administered Price Cap , which caps the price in the wholesale electricity market once the Cumulative Price Threshold has been reached, will be set at $600/MWh from 1 July 2025.’

(B)  More details

If this Rule Change (currently in draft) is approved, we’ll post a subsequent article … but if readers want to understand more at this point they can find more details on the Project Page for ERC0353 ‘Amendment of the Market Price Cap, Cumulative Price Threshold and Administered Price Cap’.

(C)  Submissions

On the Project Page, the AEMC notes that submissions to the draft determination are open until Thursday 26 October 2023.

That’s all for now…