Administered Price Cap

This page follows on from a longer explanation about Cumulative Price and the Cumulative Price Threshold

If the Cumulative Price exceeds the Cumulative Price Threshold, then Administered Pricing begins and the prices (for the Regions and Commodities affected) are capped at the Administered Price Cap.

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For most of the history of the NEM, the Administered Price Cap was set at $300/MWh.

However from 1st December 2022 (as a result of an Alinta-initiated rule change process noted here) the Administered Price Cap was increased to $600/MWh.