Credit Limit Procedures V2 Consultation

26/08/2019
Market National Electricity Market
StageSecond Stage
ConvenorAEMO NEM
Initiated02/05/2014
Accepting submissions?Yes
Submissions close11/07/2014

Consultation

AEMO is publishing the final determination of the Credit Limit Procedures Version 2.

Background

The new prudential standard in the National Electricity Rules took effect on 1 November 2012 and the first maximum credit limit (MCL) review in accordance with the new credit limit procedures (CLP) was made effective on 28 November 2013.

As a result of the introduction of the Clean Energy Act 2011 (CEA), the current calculation of price (PR) in the CLP includes an adjustment for carbon price. This adjustment increases the historical regional reference prices (RRP) by $20/MWh for each trading interval prior to 1 July 2012.

The Australian Government repealed the CEA on 17 July. As as result of the repeal, the CLP must take into account the removal of the carbon price as this is a step change which the CLP calculation cannot adequately address in an appropriate timeframe.

Additionally, AEMO has reviewed the MCL determination for participants included in section 10.2 of the CLP which included:

  • New market generators and small generation aggregators that are not yet generating.
  • Existing market participants that are inactive and planning to deregister.

On 2 May 2014, AEMO commenced its first stage consultation on the proposed changes in the Credit Limits Procedures Version 2. A draft Credit Limit Procedures Version 2 was provided along with supporting documentation.

One submission was received in response to the first stage consultation.
On 24 June 2014, AEMO published its draft determination on the Credit Limit Procedures V2. Changes included:

  • Rules version updated to the current version.
  • Clarification that an inactive market participant is not restricted to one who is planning to deregister.

Final Determination 

On 1 August 2014, AEMO published its final report and determination on the Credit Limit Procedures V2. Changes included:

  • Rules version updated to the current version.

The implementation of the initial review with prices adjusted to remove the direct impact of carbon is likely to align with the 2014 Shoulder 2 scheduled review which will become effective on 2 September 2014. Please refer to the summary of changes document for the timeline for implementation of the initial review.

A provisional MCL calculator is provided to support participants to estimate their MCL level for 2014 Shoulder 2 season. The parameters used in this calculator are provisional and they will be finialised prior to the commencement of the Should 2 MCL review.

The following documentation is provided:

  • Final report and determination
  • Credit Limit Procedures V2 (clean and change marked)
  • Provisional MCL calculator for 2014 Shoulder 2 (post carbon price repeal)
Credit Limit Procedures v2 - Final Report and Determination
1 August 2014 | filesize: 482 KB (.pdf)
Credit Limit Procedures v2 - Final Determination
1 August 2014 | filesize: 683 KB (.pdf) 
Credit Limit Procedures v2 - Final Determination (change marked)
1 August 2014 | filesize: 686 KB (.pdf) 
MCL Calculator - Shoulder2014 (Provisional - Carbon Price Repeal)
1 August 2014 | filesize: 122 KB (.xlsx)

Second Stage Consultation

Credit Limit Procedures v2 - Second Stage Consultation Notice
24 June 2014 | filesize: 167 KB (.pdf)
Credit Limit Procedures v2 - Draft Report and Determination
24 June 2014 | filesize: 697 KB (.pdf)
Credit Limit Procedures v2 - Draft Determination
24 June 2014 | filesize: 531 KB (.pdf)
Credit Limit Procedures v2 - Draft Determination (change marked)
24 June 2014 | filesize: 688 KB (.pdf)

First Stage Consultation

Credit Limit Procedures v2 - First Stage Consultation Notice
02 May 2014 | filesize: 66 KB (.pdf)
Credit Limit Procedures v2 – Draft
02 May 2014 | filesize: 370 KB (.pdf)
Credit Limit Procedures v2 – Draft (change marked)
02 May 2014 | filesize: 394 KB (.pdf)
Credit Limit Procedures v2 - Summary of Changes
02 May 2014 | filesize: 405 KB (.pdf)
First Stage Participant Responses
AGL
24 June 2014 | filesize: 122 KB (.pdf)

For further information please contact AEMO Support Hub

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