Settlements Residue Auction
Settlements residue arises in the NEM because the amount required to be paid by Market Participants (generally Market Customers) to AEMO in respect of spot market transactions will generally differ from the amount required to be paid by AEMO to other Market Participants (generally Market Generators) for those spot market transactions.
|Intra-regionals settlements residue:
||Inter-regional settlements residue :
- that component of settlements residue relating only to settlement transactions within a region; and
- not listed for auctions, but distributed to, or recovered from, the appropriate TNSPs
- that component of settlements residue relating to inter-regional transmission over regulated interconnectors and settlement transactions between regions;
- calculated on the basis of regional reference prices and inter-regional flows; and
- listed for auctions conducted by AEMO
Inter-regional settlements residue is available for purchase at auction by certain participants in the NEM.