Inter-Regional Settlement Residue arises in the NEM because the amount required to be paid by Market Customers to AEMO in respect of spot market transactions will generally differ from the amount required to be paid by AEMO to Market Generators for those spot market transactions.
Inter-Regional Settlement Residue is the difference between the value of energy in one region and the value of that energy once it has been transferred to another region. This difference in value is primarily due to the price difference between regions. The price differences can be due to the applications of inter-regional transmission constraints or (to a lesser extent) the marginal loss factors that apply between regions.
The Settlement Residue Auctions are intended to improve the efficiency of the NEM by promoting inter-regional trade. By making the settlements residue available to the market place, the risks of trading between regions can be better managed.
Details of the auction results and all relevant background material are available below.
For further information on the Settlement Residue Auction, please contact: John Wormald, Senior Manager Electricity Market Operations & Performance.
SRA documentation includes general information:
- SRA Information Memorandum 2009
- Auction Participation Agreement
- Auction Rules
- Exemption from Requirement to Hold Australian Financial Services License
- National Electricity Rules Clause 3.6.5: Methodology for the Allocation and Distribution of Settlements Residue
- Mathematical Formulation of Settlement Residue Auction Algorithm
- Settlement Residue Committee
- SRA Negative Settlement Residue Reconciliation
and auction specific information:
SRA WORK IN PROGRESS:
- Proposed Changes to Settlements Residue Auction Rules - 04 Sep 2009
- Consultation on Trigger Level for Management of Negative Settlement Residues - 24 Jul 2009
