Clearing payments

Settlement Cycle Timeline

All Wholesale Electricity Market (WEM) transactions, other than bilaterally traded quantities, are settled in accordance with this Settlement Cycle Timeline document published in accordance with 9.3 of the WEM Rules effective 1 October 2023. Previous Settlement Cycle Timelines were published in accordance with the pre-October 2023 WEM Rules.

EFT Facility

In accordance with clause 9.18.4(a) of the WEM Rules AEMO must nominate an electronic funds transfer (“EFT”) facility to be used by all Rule Participants for the purpose of settlements under the WEM Rules.

The EFT facility to be used by all Rule Participants for the purpose settlements under the WEM Rules is Austraclear. Austraclear is provided by the ASX.

To transact through Austraclear, Market Participants and Rule Participants must nominate to AEMO:

  1. A valid Austraclear account in the name of the participant; or
  2. A valid Austraclear account provided by a third party.

Unless otherwise authorised by AEMO, all Rule Participants must use the EFT facility nominated by AEMO under clause 9.18.4 for the purpose of settlements under the WEM Rules.

For a participant Austraclear account

  1. The account must be in the registered name of the participant.
  2. The participant must provide proof of the account to AEMO.
  3. The participant must confirm that the online training for the Austraclear system has been completed.

For a third-party Austraclear account

The use of third-party Austraclear accounts is acceptable in certain circumstances. This must be approved by AEMO, and is subject to the following pre-requisites:

  1. The third party must be a special purpose electricity member or full member of Austraclear (unless associate membership is granted by Austraclear).
  2. The participant must formally apply to AEMO for approval.
  3. As a pre-requisite of approval, the participant must authorise AEMO to transact with the third party on the participant's behalf. This authorisation must be in writing, and:
    • Be signed by the participant's directors or under company seal.
    • Include a statement that the participant:
      • acknowledges that, notwithstanding approval of the third party to act on the participant's behalf, the participant's obligations under the WEM Rules remain unaffected, and 
      • will procure the third party to comply with the participant's obligations under the WEM Rules.
    • Detail the participant's process for resolving situations where the third party is not, or may not be, complying with the WEM Rules.
    • Include a statement from the third party, signed by the third party's directors or under company seal, that:
      • the participant has explained the obligations under the WEM Rules with which the third party must comply, and 
      • the third party will comply with these obligations, particularly the obligation under WEM Rule 9.18.6 to cause the amount specified in that rule to be paid via Austraclear before 10:00 am WST on the date specified in that rule.
  4. The participant must provide proof of the account to AEMO.

Nominating an Austraclear Account

All information must be submitted through the Wholesale Electricity Market System (WEMS) Market Participant Interface (MPI) at least five business days prior to the date from which a participant wishes to participate in the WEM.

Failure to supply the required information within the time frame required by AEMO may result in the participant being unable to participate in trading via the WEMS, and may result in Rule Participants being unable to receive compensation for market services delivered.

Minimum Transaction Amount

In accordance with clause 9.18.4(b) AEMO must publish the minimum cost of processing a transaction using the EFT facility, as charged by the EFT facility, on the Market Web Site.

In accordance with the current ASX Schedule of Fees the minimum cost of processing a transaction using Austraclear is $5.50 ex GST per Cash Trade. AEMO has therefore determined that the applicable Minimum Transaction Cost is $6.05.

Any trades less than this amount will not be actioned.

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