Settlements Residue Auctions (SRAs) give eligible Registered Participants access to inter-regional settlements residue (IRSR) by enabling them to bid for entitlements to a proportion of the total IRSR, however, due to the many variables affecting IRSR, bidding is financially speculative and carries a number of risks.
The NER sets out basic principles governing the way IRSR must be allocated and distributed, but leaves the details of the allocation and distribution methodology to AEMO. Rule 3.18.3 permits AEMO to develop auction rules setting out how auctions are to be conducted.
This Guide provides an overview of the auction process. It does not contain all relevant references to the NER, the auction rules, or any other governing instrument and does not contain an exhaustive list of all relevant factors and issues. Anyone wishing to participate in the auction should obtain their own legal, taxation, and financial advice and should conduct their own assessment of the risks associated with participating in auctions before seeking to do so.
For further information on these documents, please contact: Brian Nelson, Senior Manager Electricity Market Performance.