Settlement Residue Auction Rules

The AEMC published its final report of the Congestion Management Review on 16 June 2008.  The report recommended changing the design of Settlement Residue Auctions (SRA) so that auction units will be available up to three years in advance.

During late 2009 AEMO undertook a full consultation on amendments to the SRA Auction Rules to facilitate auctioning of units up to 3 years in advance, with the amended Rules due to come into force on 1 May 2010 in time for  the June 2010 auction, where for the first time units would auctioned three years in advance.. In addition, AEMO introduced a number of miscellaneous amendments to reflect current auction practices.

The miscellaneous changes included

• Removal of the concept of concurrent auctions which is no longer required with inter-temporal linking;
• Removal of the option for accelerated auctions as this is no longer considered necessary;
• Corrections of a number of Rule references; and
• Removal of the remaining references to Snowy interconnectors.

The Settlements Residue Committee approved the changes to the Settlement Residue Auction Rules in December 2009, noting the Rules were due to come into force on 1 May 2010.

For further information regarding the document please contact Brian Nelson, Senior Manager Electricity Market Performance.

Settlement Residue Auction Rules 28 Jan 2011 | filename: 0550-0089.pdf