Closing date for submissions in response to the Procedure Change Proposal28 January 2022
Publication of Procedure Change Report21 February 2022
Proposed commencement of revised Market Procedure28 February 2022
Procedure Change Proposal
Wholesale Electricity Market Rules – Clause 2.10
Date of Notice: 17 December 2021
Matter under Consultation
Clause 2.9.3(b) of the WEM Rules requires a WEM Procedure to be amended where a change is required to maintain consistency with the Amending Rules. AEMO has initiated this Procedure Change Proposal to propose amendments reduce the Credit Limit assessment period and to correlate STEM and Non-STEM exposure for the calculation of a Market Participant’s Credit Limit.
Further details are provided in the Procedure Change Proposal published with this notice. The proposed revised WEM Procedure is published with this notice and the Procedure Change Proposal.
Procedure Change Proposal documents
Invitation to Make Submissions
AEMO invites written submissions on this Procedure Change Proposal, including any alternative or additional proposals you consider may improve the procedure/s or better meet the Wholesale Market Objectives in section 122(2) of the Electricity Industry Act 2004 (and clause 1.2.1 of the WEM Rules).
Please identify any parts of your submission that you wish to remain confidential, and explain why. AEMO may still publish that information if it does not consider it to be confidential, but will consult with you before doing so.
In your submission, you may request a meeting with AEMO to discuss the Procedure Change Proposal, stating why you consider a meeting is necessary or desirable.
If appropriate, meetings may be held jointly with other Consulted Persons. Subject to confidentiality restrictions, AEMO will generally make details of matters discussed at a meeting available to other Consulted Persons, and may publish them.
Closing Date and Time
Submissions in response to this Procedure Change Proposal should be sent by email to firstname.lastname@example.org, to reach AEMO by 5.00 pm (AWST) on 28 January 2022.
All submissions must be forwarded in electronic format (both pdf and Word). Further, all emails relating to this Procedure Change Proposal must be entitled “AEPC_2021_04 Prudential Requirements - [Name of the submitting company or individual]”. Submissions should use the Procedure Change Submission form available on this page.
AEMO is not obliged to consider submissions received after the closing date and time. Any late submissions should explain the reason for delay and the detriment to you if AEMO does not consider your submission.
All submissions will be published on AEMO’s website. Confidential information will not be published, other than as specified above.
Notification of Proposed Amendments by a Rule Participant
Wholesale Electricity Market Rules – Clause 2.10.2 and 2.10.2A
Date of Notice: 16 September 2021
This notice informs all Rule Participants and interested parties (Consulted Persons) that AEMO has considered the notification made by Change Energy under clause 2.10.2 of the WEM Rules and determined that, in accordance with clause 2.10.2A of the WEM Rules, amendments to WEM Procedure: Prudential Requirement would be appropriate.
AEMO will initiate the Procedure Change Process by developing a Procedure Change Proposal as detailed in clause 2.10. A notice containing information of the Procedure Change Proposal will be published on the Market Web Site.
On 20 August 2021 Change Energy notified AEMO that they consider an amendment the WEM Procedure: Prudential Requirement would be appropriate in accordance with clause 2.10.2 of the WEM Rules. Change Energy suggested the following requirements be considered:
- The requirement under step 2.2.2. of the Market Procedure for AEMO to use up to 24 months of available data when determining a Market Participant’s Anticipated Maximum Exposure (AME), a key input to the Credit Limit methodology.
- The requirement under step 2.2.2. of the Market Procedure for AEMO to consider the AME as the sum of the 70-day maximum Non-STEM Settlement exposure and 15-day maximum STEM Settlement exposure, where these time periods are not necessarily aligned
On 16 September 2021, in accordance with clause 2.10.2A of the WEM Rules, AEMO published this notice to advise that it had considered the matters raised by Change Energy and determined that a Procedure Change Proposal will be progressed that:
- Considers whether amendments to the requirement under step 2.2.2. of the Market Procedure for AEMO to use up to 24 months of available data when determining a Market Participant’s Anticipated Maximum Exposure (AME), a key input to the Credit Limit methodology should be amended.
- Considers whether amendments to the requirement under step 2.2.2. of the Market Procedure for AEMO to consider the AME as the sum of the 70-day maximum Non-STEM Settlement exposure and 15-day maximum STEM Settlement exposure, where these time periods are not necessarily aligned should be amended.