AUS: ACCC Draft Determination on Electricity Code
AUS: ACCC Draft Determination on Electricity Code Changes
The Australian Competition and Consumer Commission has issued its draft determination for authorisation of changes to the National Electricity Code.
The code changes deal with the three separate issues of:
market operations for the Y2K period;
the regulatory test for new network investments; and
deferring compensation payments for system security directions.
"The ACCC has largely accepted the code changes as proposed by the National Electricity Code Administrator," the ACCC Deputy Chairman, Mr Allan Asher, said today.
The Y2K code changes will set a ceiling price of $300/MWh and a floor price of $0/MWh for the electricity spot market. The ceiling and floor prices are to be in place for three days, beginning on 31 December 1999, but the National Electricity Code Administrator (NECA) can extend the period for a further seven days.
"In response to the concerns of electricity market participants, the ACCC has imposed a draft condition requiring NECA to publish the criteria it will use to decide whether the price constraints will last for three days or will be extended for a further seven days," Mr Asher said.
The code changes would also change
the criteria used to assess the merits of investments in the
regulated electricity networks. The code change would
replace the existing customer benefits test with a
regulatory test to be determined by the ACCC. The ACCC has
also published a revised draft of this regulatory test.