Fees and charges
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Fees and Charges
Under the Market Rules, fees are charged for registration of Participants and Facilities. The fees for registration (and other sundry matters) can be found here.
Information to be released on application
Under Market Rule 10.4, AEMO may charge a fee for provision of information, where that information is requested from AEMO.
Upon receiving a request for information under this Market Rule, AEMO will advise the relevant Participant of the fee for this service based on an estimate of the time required and an hourly charge.
Market Fees for 2015/16
AEMO is required to charge Market Fees in accordance with clause 2.24 of the Market Rules to recover the costs of:
- AEMO and the IMO;
- System Management's wholesale market related functions; and
- Economic Regulatory Authority's wholesale market related functions.
Market Rule 2.24.2 requires that AEMO publish, before June 30 each year, the level of Market Fee rate for the coming financial year.
The expected Market Fee rate for 2015/16 has been set at $0.908/MWh.
This proposed fee fee will apply to all metered load and metered generation of Market Participants from 1 July 2015 unless revised under Market Rule 2.24.2A.
In accordance with clause 9.13.1 of the Market Rules, the fee rate is based on spreading the total required revenue over both the total generation and the total consumption of electricity in the SWIS.
There are two main variables in setting Market Fees. These are:
- Target Revenue (or budget) which needs to be set to adequately cater for the costs of AEMO, System Management and the ERA; and
- Forecast energy supply/consumption.
Revenue to be Recovered through Market Fees
The total revenue to be recovered through Market Fees is expected to be as follows:
Total Revenue (000) 2015/16 2014/15 2013/14 AEMO Revenue Requirement 19,012 15,225 16,758 SM Revenue Requirement 14,041 15,105 12,616 ERA Revenue Requirement 1,218 2,488 2,589 Total Revenue to be Recovered through Market Fees 34,271 32,818 31,963
AEMO 2015/16 Budget
On 30 April 2015, the IMO submitted to the Minister its budget proposal for 2015/16 as part of its Operational Plan.
The 2015/16 budget was consistent with the Allowable Revenue approved by the ERA.
A revenue target of $19.012 million is expected to be recovered from Market Participants through Market Fees during 2015/16 subject to any revision under Market Rule 2.24.2A. This includes $14,000 as the Inter-Period Adjustment for the 2013/14 Actual Audited deficit as permitted under Market Rule 2.22.7.
The breakdown of this budget into Market Operation, System Planning and Market Administration must be published with the publication of the Market Fee rate. This is as follows:
Revenue Requirement (000) 2015/16 2014/15 2013/14 Market Operation 8,002 7,051 8,976 Market Administration 5,061 5,498 5,052 System Planning 4,171 2,676 2,730 EMR Recommendations - initial planning 1,778 - - Total Revenue Requirement 19,012 15,225 16,758
System Management Budget
System Management's budget for 2015/16 of $14.041 million ($15.105 million in 2014/15), which is consistent with the Allowable Revenue approved by the ERA, is to be recovered from Market Participant fees.
The ERA Wholesale Electricity Market related costs of $1.218 million ($2.488 million in 2014/15), as approved by the Government, are to be recovered from Market Participant fees.
Forecast Energy Supply/Consumption
Forecasts prepared for the 2014 Electricity Statement of Opportunities (ESOO) are the latest available assessment of energy forecast supply/consumption figures going forward – this “expected” energy forecast is used as the basis for calculating 2015/16 Market Fees.
The 2014 ESOO “expected” forecast of sent-out energy in 2015/16 is 18,731 GWh. This is up from 18,680 GWh that was used in setting the 2014/15 Fee Rate (an increase of 51 GWh or 0.3%). The increase is related to a forecast population growth offset partially by a higher PV uptake and a reduction in block loads.
In accordance with the Market Rules, the ESOO sent-out forecasts must be loss-adjusted to the Muja reference for use in calculating the actual monthly Market Fees. An average (generation) loss factor of 1.0068089 (average for the 2013/14 Reserve Capacity Year) has been used to loss-adjust the ESOO sent-out figure to the Muja reference node. This results in energy forecast supply/consumption figure of 18,859 GWh.
Under the Market Rules the fee rates are based on spreading the total required revenue over both the total generation and the total consumption of electricity in the market. This incorporates all energy, including that sold/bought under bilateral contracts.
The “expected” energy forecast, therefore, is effectively doubled to apply Market Fees equally across Market Generators and Market Customers. This results in an amount of 37,718 GWh (37,583 GWh in 2014/15) over which all targeted revenue is spread to calculate a Market Fee rate.
Breakdown of Market Fees
The Market Fee rate is structured in three parts to provide transparency of fee rates related to AEMO, System Management and the ERA.
Spreading the total revenue requirement over the projected energy supply and consumption of 37,718,000 MWh (37,583,000 in 2014/15) results in the following fee rates:
Fee Type 2015/16 2014/15 2013/14 AEMO Fee Rate 0.504/MWh 0.405/MWh 0.456/MWh System Management Fee Rate 0.372/MWh 0.402/MWh 0.343/MWh Economic Regulation Authority Fee Rate 0.032/MWh 0.066/MWh 0.070/MWh Total Market Fee Rate 0.908/MWh 0.873/MWh 0.869/MWh
This document is published in accordance with Market Rule 10.5.1 (u).