Who claims and who pays: the administered price cap (APC) compensation process

Who claims and who pays: the administered price cap (APC) compensation process

AU Energy Compliance
The APC compensation scheme allows certain entities to claim compensation via AEMO and the AEMC where their total costs exceed their total revenue from the spot market over an eligible period. Entities that may be entitled to claim include scheduled and non-scheduled generators, scheduled network service providers, market participants in respect of a scheduled load, demand response service providers and ancillary service providers. What is recoverable? There are two broad categories of compensation that go into the total compensation amount (TCA). These are direct costs and opportunity costs. Opportunity costs are defined in the AEMC’s guideline as follows: Opportunity cost is the value of the best alternative opportunity for eligible participants during the application of a price limit event or at a later point in time. The opportunity cost is…
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NSW Energy Minister granted emergency powers to direct coal to fuel electricity generators

NSW Energy Minister granted emergency powers to direct coal to fuel electricity generators

AU Energy Compliance
The NSW Energy Minister, Matt Kean, has been granted emergency powers under the Essential Services Act 1988 to direct coal companies to provide coal to generators.  These powers were granted in response to the current energy market crisis. We haven’t been publishing much about the current energy market crisis as we, like many in the industry, have been in the thick of it. However, from today, we will publish analysis of the regulatory responses of AEMO and state Governments. So, what do the powers allow the Minister to do and do they have any teeth? The power granted to the Minister is to direct a person to do any act or thing to increase, or facilitate the increase of, the supply or distribution of coal to a power station. The…
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