A long-run trend of monthly average Contingency FCAS prices in NSW

Another short (and somewhat cryptic) article with this trend from the ez2view ‘Trends Editor’ to summarise the overall trend of (monthly average) prices in the 8 x Contingency FCAS markets focused on the NSW region:

Those with a licence to the software can open up their own copy of this trend here.

In terms of key dates, remember:

• The NEM started back at the end of 1998 … but it was only trading ENERGY at that point;
• 8 x FCAS markets commenced in September 2001:
  • 6 x Contingency FCAS markets (i.e. 3 x Raise and 3 x Lower); and
  • 2 x Regulation FCAS markets (i.e. Raise and Lower)
• The FCAS suite of markets expanded to 10 from 9th October 2023 with the addition of Fast Frequency Response (FFR).
• This weekend, we see the commencement of Frequency Performance Payments, which sees both:
  • The retirement of the old ‘Causer Pays’ method for allocation of Regulation FCAS; and also
  • A new stream of payments (and cost recoveries) for Primary Frequency Response (PFR).
  • … these ‘Two diagrams to help illustrate the changes coming with FPP (Frequency Performance Payments)’ might help!