The AEMC yesterday published its annual update to the NEM’s reliability settings, confirming that the Market Price Cap (MPC) will rise to $23,200/MWh for the 2026–27 financial year — another step up in the staged ‘rebuild’ of the market cap now underway.
The increase will take affect from July 1st 2026, and follows the prior step-up from July 1st 2025, when the MPC increased to $20,300/MWh (from $17,500/MWh in FY 2024–25).
The increase is larger than the ‘typical’ annual inflation-linked increase because the MPC is currently on a multi-year step-up pathway set under the AEMC’s 2023 rule change to increase the base rate of the MPC and CPT. The final of the three increases to the base rate will occur for the 2027-28 FY.
As part of the latest update, the CPT will also rise to $2,225,900/MWh from July 1st 2026.
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