Wholesale Electricity Market Amending Rules (19 September 2006) (WA)
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WESTERN 3785 AUSTRALIAN GOVERNMENT
| ISSN 1448-949X |
PERTH, TUESDAY, 19 SEPTEMBER 2006 No. 161 SPECIAL PUBLISHED BY AUTHORITY JOHN A. STRIJK, GOVERNMENT PRINTER AT 4.00 PM
© STATE OF WESTERN AUSTRALIA
ELECTRICITY INDUSTRY ACT 2004
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ELECTRICITY INDUSTRY
(WHOLESALE ELECTRICITY
MARKET) REGULATIONS 2004
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WHOLESALE ELECTRICITY
MARKET AMENDING RULES (SEPTEMBER 2006)
ELECTRICITY INDUSTRY ACT 2004
ELECTRICITY INDUSTRY (WHOLESALE ELECTRICITY
MARKET) REGULATIONS 2004
COMMENCEMENT OF CERTAIN PROVISIONS OF THE
WHOLESALE ELECTRICITY MARKET RULES
All of the provisions of the Wholesale Electricity Market Rules made under regulation 6(2) of the Electricity Industry (Wholesale Electricity Market) Regulations 2004 that have not commenced as at the date on which this notice is published in the Government Gazette, other than clauses 2.3 to 2.11 (inclusive) and clause 10.4 of the Wholesale Electricity Market Rules, are to commence at 8.00am (WST) on 21 September 2006.
Dated at Perth this day 14th of September 2006.
FRANCIS LOGAN MLA, Minister for Energy.
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ELECTRICITY INDUSTRY ACT 2004
ELECTRICITY INDUSTRY (WHOLESALE ELECTRICITY
MARKET) REGULATIONS 2004
WHOLESALE ELECTRICITY MARKET AMENDING RULES (SEPTEMBER 2006)
I, Francis Logan, Minister for Energy for the State of Western Australia, under regulation 6(2) of the Electricity Industry (Wholesale Electricity Market) Regulations 2004 hereby make the following amending rules.
These amending rules are to come into force at 8.00am (WST) on 21 September 2006.
Dated at Perth this day 14 of September 2006.
FRANCIS LOGAN MLA, Minister for Energy.
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1. Citation
These amending rules may be cited as the Wholesale Electricity Market Amending Rules
(September 2006).2. Amendments to Wholesale Electricity Market Rules
The Wholesale Electricity Market Rules published in the Government Gazette on 5 October 2004, as amended by amending rules published in the Government Gazette on [9 September 2005, 25 October 2005, 20 January 2006, 3 February 2006, 31 March 2006 and 18 August 2006], are hereby amended by:
(a) inserting the underlined text; and (b) deleting the text shown as struck through, as shown in the attached Wholesale Electricity Market Amending Rules (September 2006).
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ELECTRICITY INDUSTRY ACT 2004
_________
ELECTRICITY INDUSTRY
(WHOLESALE ELECTRICITY
MARKET) REGULATIONS 2004
———————————
WHOLESALE ELECTRICITY
MARKET AMENDING RULES
(SEPTEMBER 2006)
Table of Contents TABLE OF CONTENTS
1. INTRODUCTION
The Market Rules
1.1. Authority of Market Rules 1.2. Objectives Conventions
1.3. Electricity Industry Act and Regulations 1.4. Other rules of interpretation 1.5. Subservient Documents 1.6. Notices 1.7. Publication Staging
1.8. Staging of the Market Rules 1.9. Transition 2. ADMINISTRATION
Functions and Governance
2.1. Independent Market Operator 2.2. System Management 2.3. The Market Advisory Committee Market Documents
2.4. Market Rules 2.5. Rule Change Proposals 2.6. Fast Track Rule Change Process 2.7. Standard Rule Change Process 2.8. Review of IMO Rule Amendment Decisions, Ministerial Approval and Coming into Force of Rule
Amendments2.9. Market Procedures 2.10. Procedure Change Process
2.11. Coming into Force of Procedure Amendments Monitoring, Enforcement and Audit
2.12. Standard of Performance
2.13. Market Rule Compliance Monitoring and Enforcement 2.14. Audit
2.15. Monitoring and Reporting Protocols 2.16. Monitoring the Effectiveness of the Market Reviewable Decisions and Disputes
2.17. Reviewable Decisions 2.18. Disputes
2.19. First Stage Dispute Resolution 2.20. Second Stage Dispute Resolution Market Consultation
2.21. Market Consultation Budgets and Fees
2.22. Determination of the IMO’s budget 2.23. Determination of System Management’s budget 2.24. Determination of Market Fees 2.25. Payment of Market Participant Fees Maximum and Minimum Prices and Loss Factors
2.26. Economic Regulation Authority Approval of Maximum and Minimum Prices 2.27. Determination of Loss Factors
i
Participation and Registration
2.28. Rule Participants 2.29. Facility Registration Classes
2.30. Facility Aggregation 2.30A. Exemption from Funding Spinning Reserve
2.30B. Intermittent Load2.30C. Rule Commencement and Registration Data
2.31. Registration Process 2.32. Rule Participant Suspension and Deregistration 2.33. The Registration Forms
2.34. Standing Data Communications and Systems Requirements
2.35. Dispatch Systems Requirements
2.36. Market Systems Requirements
Prudential Requirements
2.37. Credit Limit 2.38. Credit Support 2.39. Trading Limit 2.40. Outstanding Amount 2.41. Trading Margin 2.42. Margin Call 2.43. Prudential Market Procedure
Emergency Powers
2.44. Minister’s Emergency Powers 3 POWER SYSTEM SECURITY AND RELIABILITY
Security and Reliability
3.1. SWIS Operating Standards 3.2. Technical Envelope, Security and Equipment Limits 3.3. Normal Operating State 3.4. High Risk Operating State 3.5. Emergency Operating State 3.6. Demand Control 3.7. System Restart 3.8. Investigating Incidents in the SWIS Ancillary Services
3.9. Definitions of Ancillary Services 3.10. Ancillary Service Standards
3.11. Determining & Procuring Ancillary Service Requirements 3.12. Ancillary Service Dispatch
3.13. Payment for Ancillary Services 3.14. Ancillary Service Cost Recovery 3.15. Review of Ancillary Service Requirements Process and Standards Medium and Short Term Planning
3.16. Medium Term PASA
3.17. Short term PASA
3.18. Outage Scheduling 3.19. Outage Approval 3.20. Outage Recall 3.21. Forced Outages Commissioning Tests
3.21A Commissioning Tests
Decommitment and Reserve Capacity Obligations
3.21B. Decommitment and Reserve Capacity Obligations
ii
Settlement Data
3.22. Settlement Data 4 RESERVE CAPACITY RULES
The Reserve Capacity Cycle
4.1. The Reserve Capacity Cycle The Reserve Capacity Expression of Interest
4.2. The Reserve Capacity Expression of Interest Process 4.3. Information to be Included in Requests for Expression of Interest 4.4. Information to be Included in Expression of Interests The Long Term SWIS Capacity Requirements
4.5. Long Term Projected Assessment of System Adequacy 4.6. Reserve Capacity Requirements Certification of Reserve Capacity
4.7. The Reserve Capacity Information Pack 4.8. Who Can Apply for Certification of Reserve Capacity 4.9. Process for Applying for Certification of Reserve Capacity 4.10. Information Required for the Certification of Reserve Capacity 4.11. Setting Certified Reserve Capacity 4.12. Setting Reserve Capacity Obligations Commitment of Capacity to Auction or Bilateral Trade
4.13. Reserve Capacity Security
4.14. Market Participant Auction and Bilateral Trade Declaration Reserve Capacity Auctions
4.15. Confirmation or Cancellation of Reserve Capacity Auctions 4.16. The Maximum Reserve Capacity Price 4.17. Reserve Capacity Auction Submission Process 4.18. Reserve Capacity Offer Format 4.19. Reserve Capacity Auction Clearing Capacity Credits
4.20. Capacity Credits Special Price Arrangements
4.21. Short Term Special Price Arrangements 4.22. Long Term Special Price Arrangements 4.23. Capacity Credits and Force Majeure 4.23A. Capacity Credits and Facility Registration
Addressing Shortages of Reserve Capacity
4.24. Supplementary Reserve Capacity
Testing, Monitoring and Compliance
4.25. Reserve Capacity Testing
4.26. Financial Implications of Failure to Satisfy Reserve Capacity Obligations 4.27. Reserve Capacity Performance Monitoring Funding Reserve Capacity Purchased by the IMO
4.28. Funding Reserve Capacity Purchased by the IMO Intermittent Load Refunds
4.28A. Intermittent Load RefundsTreatment of New Small Generators
4.28B. Treatment of New Small Generators
Settlement Data
4.29. Settlement Data
iii
5 NETWORK CONTROL SERVICE PROCUREMENT
Network Control Service Tender Process and Timelines
5.1. Definitions and Obligations 5.2. Network Control Service Procurement Requirements 5.3. Network Control Service Certification 5.4. Network Control Service tenders Network Control Service Contracts
5.5. Contract Conditions 5.6. Network Control Service Contract Compliance Conditions 5.7. Network Control Service Dispatch Payments and Settlement Data
5.8. Network Control Service Contracts Payments 5.9. Settlement Data 6. THE ENERGY MARKET
Energy Scheduling Timetable and Process
6.1. [Blank] 6.2. Bilateral Submission Timetable and Process 6.2A. Standing Bilateral Submission Timetable and Process 6.3. [Blank] 6.3A. Information to Support the Bilateral and STEM Submission Process 6.3B. STEM Submissions Timetable and Process 6.3C. Standing STEM Submission Timetable and Process 6.4. The STEM Auction Timetable and Process 6.5. Resource Plan Submission Timetable and Process 6.5A. Balancing Data Submission Timetable and Process 6.5B. [Blank]
6.5C. Standing Resource Plan Submission Timetable and Process STEM Submission and Bilateral Submission Formats
6.6. Format of STEM Submission and Standing STEM Submission Data 6.7. Format of Bilateral Submission Data 6.8. [Blank] The STEM Auction Process
6.9. The STEM Auction 6.10. Suspension of the STEM Resource Plans and Balancing Data
6.11. Format of Resource Plans6.11A. Format of Balancing Data
The Dispatch Merit Order
6.12. The Dispatch Merit Order Balancing Pricing and Quantities
6.13. Real Time Dispatch Information 6.15. The Dispatch Schedule 6.16. The Metered Schedule 6.17. Balancing Settlement Quantities
6.14. Calculation of MCAP, UDAP and DDAP 6.18. Commitment Compensation Market Advisories and Energy Price Limits
6.19. Market Advisories 6.20. Energy Price Limits
Settlement Data
6.21. Settlement Data
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7 DISPATCH
Data used in the Dispatch Process
7.1. Data Used in the Dispatch Process 7.2. Load Forecasts and Ancillary Service Requirements 7.3. Outages 7.4. Resource Plans 7.5. Dispatch Merit Orders and Fuel Declarations Dispatch Process
7.6. The Dispatch Criteria 7.6A. Scheduling and Dispatch of the Electricity Generation Corporation 7.7. Dispatch Instructions 7.8. Dispatch Instructions Implemented by System Management 7.9. Commitment Dispatch Compliance
7.10. Compliance with Resource Plans and Dispatch Instructions Advisories, Balancing Suspension and Reporting
7.11. Dispatch Advisories 7.12. Status Reports Settlement and Monitoring Data
7.13. Settlement and Monitoring Data 8 WHOLESALE MARKET METERING
Metering Data Agents
8.1. Metering Data Agents 8.2. Duties of a Metering Data Agent Meter Registry
8.3. Meter Registry Meter Data Submissions
8.4. Meter Data Submission 8.5. Notices of Disagreement and Disputed Meter Data 8.6. Format of Meter Data Submissions Metering Protocol Requirements
8.7. Metering Protocol Requirements Support of Calculations
8.8. Support of Calculations 9 SETTLEMENT
Introduction
9.1. Conventions 9.2. Settlement Procedure Settlement Data
9.3. Data Collection 9.4. Capacity Credit Allocation Process 9.5. Format of Capacity Credit Allocation Submissions Settlement Calculations
9.6. STEM Settlement Calculations for a Trading Week 9.7. The Reserve Capacity Settlement Calculations for a Trading Month 9.8. The Balancing Settlement Calculations for a Trading Day 9.9. The Ancillary Service Settlement Calculations for a Trading Month 9.10. The Commitment and Outage Compensation Settlement Calculations for a Trading Month 9.10A. Non-Compliance Charge
9.11. The Reconciliation of Settlement Calculations for a Trading Month 9.12. Network Control Service Calculations for a Trading Month 9.13. The Market Participant Fee Settlement Calculations for a Trading Month
v
9.14. The Net Non-STEM Settlement Amount for a Trading Month 9.15. The Service Fee Settlement Amount for a Trading Month Settlement Statements
9.16. Settlement Cycle Timelines
9.17. STEM Settlement Statements
9.18. Non-STEM Settlement Statements
9.19. Adjusted Settlement Statements9.20. Notices of Disagreement
9.21. Settlement Disputes Invoicing and Payment
9.22. Invoicing and Payment
Default and Settlement in Default Situations
9.23. Default
9.24. Settlement in Default Situations 10 MARKET INFORMATION
Information Policy
10.1. Record Retention 10.2. Information Confidentiality Status
10.3. The Market Web Site 10.4. Information to be Released on Application Information to be Released via the Market Web Site
10.5. Public Information 10.6. SWIS Restricted Information
10.7. Rule Participant Market Restricted Information 10.8. Rule Participant Dispatch Restricted Information 11 GLOSSARY
APPENDIX 1: STANDING DATA
APPENDIX 2: SPINNING RESERVE COST ALLOCATION
APPENDIX 3: RESERVE CAPACITY AUCTION & TRADE METHODOLOGY
APPENDIX 4: MAXIMUM RESERVE CAPACITY PRICE METHODOLOGY
APPENDIX 4A: INTERMITTENT LOAD INDIVIDUAL RESERVE CAPACITY REQUIREMENTS
APPENDIX 5: INDIVIDUAL RESERVE CAPACITY REQUIREMENTS
APPENDIX 6: STEM BID ,STEM OFFER AND MCAP PRICE CURVE DETERMINATION
APPENDIX 7: DISPATCH SCHEDULE CALCULATION
APPENDIX 8: TOP-UP AND SPILL RULESAppendix 8: Chapter 1 – Introductory
Definitions
InterpretationReferences to a member include its generators and customers
Appendix 8: Chapter 2 – Membership
Application for membership
Member must have access contract
Amendment of access contract to provide for cross-default in payment
Security from applicant if access contract not amended
One membership per access contract
Membership notice
Application disputes
When the rules apply to a member
Cancelling membership
Security from member if access contract not amendedParties may contract inconsistently with these rules
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Appendix 8: Chapter 3 – TUAS market
Obligation to provide
Payment obligation
Trading electricity and balancing electricity
Exit point for spill electricity
Entry point for top-up electricity
Member’s maximum trading requirement
Advance notice of likely unavailability
Nomination of trading amounts
When Networks may refuse to accept nomination
Level of nominations which must be accepted
Effect of an accepted nomination
Forecast production data
Balancing band
Calculating member’s imbalance
Networks must supply or accept balancing electricity
Members must maintain adequate generation capacity
These rules do not affect standby power and ancillary services arrangements
Top up and spill calculated on an aggregated basis
Relief from obligation to provide trading electricity
The TUAS market during a liquids event
Calculating member’s residual imbalance
ETR balancing provisionsEDR balancing provisions
Appendix 8: Chapter 4 - Price lists
Price lists
Residual imbalance tariff list
Determining the price payable
High price days
Liquids events
Trading bands
Networks may offer higher spill pricesReplacement of price lists in changed circumstances
Appendix 8: Chapter 5 - Pricing principles and review
Prices to be economically cost neutral
Top-up trading prices may include 3% margin
Trading prices may differ from balancing prices
Balancing top-up price not to exceed balancing spill price
Residual imbalance tariffs
Pricing period and pricing review
Administration FeeAudit procedures
Appendix 8: Chapter 6 - Compliance
Default
Payment default
Effect of payment default notice
General default
Effect of general default notice
Written warning for having a residual imbalance
Imbalance default
Effect of imbalance default notice
Default by Generation or NetworksNo termination for member’s default
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Appendix 8: Chapter 7 - Intermittent renewable energy generators
Intermittent renewable generators defined
Output for intermittent renewable generators
Appendix 8: Chapter 8 - Dispute resolution
Applicant Disputes Procedure
Award by the arbitrator Restrictions on awards Effect of awardsNo third party intervention in arbitration
Performance of obligations
Commercial Arbitration Act 1985 does not apply
Additional jurisdiction of arbitrator for contractual disputesProcedural rules for contractual disputes
Appendix 8: Chapter 9 - Other provisions
Provisions of access contract apply
Publishing informationTitle to electricity
Appendix 8: Chapter 10 - Operating procedures and agreed procedures
Members must comply with operating procedures
Agreed procedures
Appendix 8: Chapter 11– TUAS Consultation Group
Appendix 8: Chapter 12 – Amendment of rules
Transitional amendments
Submission of request for amendment of the rules
Amendment of TUAS market rulesRequirements for operating procedures
Appendix 8: Appendix 1 – Application form
Date
Applicant
Contact person
Access contract
Modification of access contract
Information regarding security
Maximum trading requirements
Forecast production dataSigning
Appendix 8: Appendix 2 – TUAS Audits
Audit of Generation and Networks
Auditor’s qualifications etc
Auditor’s conflict of interest
Terms of auditor’s retainer
Confidentiality
Generation, Networks and members must cooperate with auditor
Audit report
Level of Audit
Audit report
Audit summary reportAppendix 8: Appendix 3 - Modified ETR balancing provisions Appendix 8: Appendix 4 – Modified EDR balancing provisions Appendix 8: Appendix 5 – Operating Procedures
Communications
ConfidentialityLine losses
viii
High Price days
Liquids Event
Calculating band size for top-up trading bands
Calculating band size for spill trading bandsForecast production data
Appendix 8: Appendix 6 – Procedural rules for arbitration
Application
Informality and expedition
Arbitrator may request information
Right to representation
Procedure
Determinations
Contempt
Disclosure of information
Power to take evidence on oath or affirmation
Failing to attend as a witness
Failing to answer questions etc.
Intimidation etc.
Party may request arbitrator to treat material as confidential
Appeal to Court
Copies of decisions to be given to the MinisterEffect of appointment of new arbitrator on evidence previously given and awards and determinations
previously made.
Arbitrator may issue summons
Decision of the Arbitrator
ix
x
Note: due to the scheme of the legislation the rules will have to be consistent with the regulations contemplated
(n)
(amendments): if the IMO or System Management has the power to make, prescribe, determine, compile, establish or develop a document, instrument, matter or thing, then the IMO or System Management also has the power to amend, replace or revoke the whole or part of that document, instrument, matter or thing exercisable in like manner and subject to like conditions (if any);
(o) (functions): “function” includes function, power, duty, responsibility and authority; (p)
(include or including): the words “include” or “including” are not used as, nor are they to be interpreted as, words of limitation, and, when introducing an example, do not limit the meaning of the words to which the example relates;
(q)
(Loss Factor adjusted): In these Market Rules, “Loss Factor adjusted” in respect of a quantity of electricity means that the quantity must be multiplied by any applicable Loss Factor; and
(r)
(Headings and comments): headings and comments appearing in boxes in these Market Rules (other than the Refund Table in clause 4.26) are for convenience only and do not affect the interpretation of these Market Rules.
1.4.2. In these Market Rules, unless the contrary intention appears, any notice or confirmation required to be
issued by the IMO may be issued by an automated software system employed by the IMO.1.5. Subservient Documents 1.5.1. The following documents are subservient to the rules:
(a) Market Procedures; and (b) any other document or instrument issued, made or given by the IMO under the Market Rules. Forms required for the submission of information to the IMO and System Management should be part of Market
Procedures.
1.5.2. In the event of conflict between the Market Rules and other documents, then the order of precedence is
to be, in the following order:
(a) the Electricity Industry Act; (b) the Regulations; (c) the Market Rules; (d) the Market Procedures; and (e) any other document or instrument issued, made or given by the IMO under the Market Rules. 1.5.3. If a provision of a document which is higher in the order of precedence (in this clause called the “higher
provision”) is inconsistent with a provision of a document which is lower in the order of precedence,
then the higher provision prevails, but only to the extent of the inconsistency.1.6. Notices 1.6.1. The IMO must develop a Market Procedure which sets out the method by which notices and
communications required under, contemplated by or relating to, these Market Rules are to be given to
or by the IMO.1.7. Publication 1.7.1.
Where the IMO is required by these Market Rules to publish or release a document or information, then the IMO must make that document or information available on the Market Web Site, in a place which is generally accessible by members of the class of persons entitled to access that document or
information given the IMO’s determination of its confidentiality status in accordance with clause 10.2. Staging 1.8. Staging of the Market Rules 1.8.1. Subject to clause 1.8.2, a provision of the Market Rules commences at the time fixed by the Minister. 1.8.2. Chapter 1, Chapter 4, Chapter 11 and Appendix 8 commence when these Market Rules are made. 1.8.3. The Minister may fix different times for different provisions of these Market Rules under clause 1.8.1. 1.8.4. The Minister must publish notice of the commencement time fixed for a provision under clause 1.8.1 in
the Government Gazette.1.8.5.
Until such time as clauses 2.4 to 2.11 take effect, the Minister may develop, maintain and make Amending Rules, and develop, formulate and publish Market Procedures in accordance with the Regulations.
1.8.6. To avoid doubt, and without limiting the foregoing, where a word or phrase listed in the Glossary in
Chapter 11 is defined by reference to a provision of these Market Rules, regard should be had to that
provision for the purposes of determining the meaning of that word or phrase, even though the
provision has not yet commenced.This table is provided only for ease of reference and does not affect the time from which a provision of the Market
Rules becomes effective in accordance with clause 1.8.
Chapter Date Clause
1 - Introduction 5 Oct 2004 Entire Chapter 2 - Administration 4 Jan 2005 2.1, 2.2, 2.12
2.17 to 2.23
2.28 to 2.341 Jul 2006 Entire Chapter 3 – Power System Security and 1 Jul 2006 Entire Chapter Reliability 4 – Reserve Capacity Rules 5 Oct 2004 Entire Chapter 5 – Network Control Service 1 Jul 2006 Entire Chapter Procurement 6 – The Energy Market 1 Jul 2006 Entire Chapter 7 - Dispatch 1 Jul 2006 Entire Chapter 8 – Wholesale Market Metering 1 Jul 2006 Entire Chapter 9 - Settlement 1 Jul 2006 Entire Chapter 10- Release of Market Information 4 Jan 2005 Parts of Chapter 1 Jul 2006 Entire Chapter
(b)
A Rule Participant owning or operating a facility to which (a) relates may submit Outage Plans for such facility with System Management in accordance with the Power System Operation Procedure as if clause 3.18.2(c) relates to the facility.
(c)
Where a Rule Participant submits an Outage Plan for a facility to System Management in accordance with (b) and System Management is of a view that after Energy Market Commencement the list described in clause 3.18.2(c) would be applicable to the facility then System Management must process the Outage Plan in accordance with the Power System Operation Procedure as if clause 3.18.2(c) relates to the facility.
(d)
Where System Management has approved an Outage Plan for a facility in accordance with (c) then that Outage Plan is to continue to apply to that facility after it becomes a Registered Facility or, in the case of a generation system, upon registration of an Intermittent Load to be supplied by that facility.
(e)
Any Outage Plan approved in accordance with this clause 1.9.11 for a facility is deemed to have been scheduled and approved in accordance with Chapter 3 once that facility becomes a Registered Facility or a generation system serving an Intermittent Load.
1.9.12.
Until three months after Energy Market Commencement the IMO, a person appointed by the Minister under clause 2.13.1, or System Management (as applicable) need take no action under clause 2.13 in respect of suspected non-compliance by a Rule Participant where, in the view of the IMO, a person
appointed by the Minister under clause 2.13.1, or System Management (as applicable), it would not be reasonable to expect the Rule Participant to comply fully with the Market Rules because of restrictions in the timing of events and the availability of data or system limitations where these restrictions or
limitations stem from the commissioning of the energy market, provided that the Rule Participant
employs reasonable endeavours to comply with the intent of the Market Rules.2. Administration Functions and Governance
2.1. Independent Market Operator 2.1.1. The Independent Market Operator, or IMO, is established under the Electricity Industry (Independent
Market Operator) Regulations 2004.2.1.2. The functions of the IMO are:
(a) to administer these Market Rules; (b) to operate the Reserve Capacity mechanism, the Short Term Energy Market and the balancing process; (c) to settle such transactions as it is required to under these Market Rules; (d) to carry out a Long Term PASA study and to publish the Statement of Opportunities Report; (e) to administer tender processes for Network Control Services where required by these Market Rules and to enter into Network Control Service Contracts; (f) to process applications for participation, and for the registration, de-registration and transfer of facilities; (g) to release information required to be released by these Market Rules; (h) to publish information required to be published by these Market Rules; (i) to develop amendments to these Market Rules and replacements for them; (j) to develop Market Procedures, and amendments and replacements for them, where required by these Market Rules; (k) to make available copies of the Market Rules and Market Procedures, as are in force at the relevant time; (l) to monitor other Rule Participants’ compliance with the Market Rules, to investigate potential breaches of the Market Rules, and if thought appropriate, initiate enforcement action under the Regulations and these Market Rules; (m) to support the Economic Regulation Authority in its market surveillance role, including providing any market related information required by the Economic Regulation Authority; (n) to support the Economic Regulation Authority in its role of monitoring market effectiveness, including providing any market related information required by the Economic Regulation Authority; and (o) to carry out any other functions conferred, and perform any obligations imposed, on it under these Market Rules. 2.1.3. The IM3OIMO may delegate any of its functions under the Market Rules (other than the power to do the things indicated as not able to be delegated in regulation 17(l) of the Regulations) to a person or body of persons that is, in the IMO’s opinion, competent to exercise the relevant functions. A function performed by a delegate is to be taken to be performed by the IMO. A delegate performing a function under this clause 2.1.3 is to be taken to do so in accordance with the terms of the delegation unless the contrary is shown.
2.2. System Management 2.2.1. The Electricity Networks Corporation, acting through the segregated business unit known as System
Management, has the function of operating the SWIS in a secure and reliable manner for the purposes
of regulation 13(1) of the Regulations.2.2.2. The other functions of System Management in relation to the Wholesale Energy Market are:
(a)
to procure adequate Ancillary Services where the Electricity Generation Corporation cannot meet the Ancillary Service Requirements;
(b)
to assist the IMO in the processing of applications for participation and for the registration, de- registration and transfer of facilities;
(c)
to develop Market Procedures, and amendments and replacements for them, where required by these Market Rules;
(d) to release information required to be released by these Market Rules; (e)
to monitor Rule Participants’ compliance with Market Rules relating to dispatch and Power System Security and Power System Reliability; and
(f)
to carry out any other functions or responsibilities conferred, and perform any obligations imposed, on it under these Market Rules.
2.2.3. System Management may delegate any of its functions under the Market Rules (other than the power
to do the things indicated as not able to be delegated in the Regulations) to a person or body of
persons that is, in System Management’s opinion, competent to exercise the relevant functions. A
function performed by a delegate is to be taken to be performed by System Management. A delegate
performing a function under this clause 2.2.3. is to be taken to do so in accordance with the terms of
the delegation unless the contrary is shown.Management’s compliance with the rules will be monitored by the IMO and breaches reported to the ERB, and the IMO will report on System Management’s performance to the Minister.
2.3. The Market Advisory Committee 2.3.1. The Market Advisory Committee is a committee of industry representatives convened by the IMO:
(a) to advise the IMO regarding Rule Change Proposals; (b) to advise the IMO and System Management regarding Procedure Change Proposals; and (c) to advise the IMO regarding market operation and SWIS operation matters. Note that the MAC does not vote on issues – instead it is a forum for views to be heard and advice to be offered to the IMO on rule and procedure changes and more generally on the operation of the market.
2.3.2. The IMO must develop and publish a constitution for the Market Advisory Committee detailing:
(a) the process for convening the Market Advisory Committee; (b) the terms of reference of the Market Advisory Committee; (c) the membership terms of Market Advisory Committee members; (d) the process for appointing and replacing Market Advisory Committee members by the IMO; (e) the conduct of Market Advisory Committee meetings; (f) the role of the Market Advisory Committee secretariat; and (g) interaction between the Market Advisory Committee and the IMO. 2.3.3. The constitution of the Market Advisory Committee must be consistent with the Market Rules. 2.3.4. The IMO must invite public submissions when developing or amending the constitution of the Market
Advisory Committee.2.3.5. Subject to clause 2.3.13., the Market Advisory Committee must comprise:
(a)
three members representing generators, of whom one must represent the Electricity Generation Corporation;
(b) one member representing Contestable Customers; (c)
at least one and not more than two members representing Network Operators, of whom one must represent the Electricity Networks Corporation;
(d)
three members representing retailers, of whom one must represent the Electricity Retail Corporation;
(e) one member nominated by the Minister to represent small consumers; (f) one member representing System Management; (g) one member representing the IMO; and (h) a chairperson of the Market Advisory Committee, who must be a representative of the IMO. 2.3.6. The Minister may appoint a representative to attend Market Advisory Committee meetings as an
observer.2.3.7. The Economic Regulation Authority may appoint a representative to attend Market Advisory Committee
meetings as an observer.2.3.8. The IMO may appoint and remove members of the Market Advisory Committee. 2.3.9. The IMO must annually review the composition of the Market Advisory Committee and may remove
and appoint members following the review.2.3.10. When appointing and removing members of the Market Advisory Committee, the IMO must consult
with, and take nominations from, industry groups that it considers relevant to the wholesale electricity
market, and, if practicable, must choose members from persons nominated.2.3.11. The IMO may remove a member of the Market Advisory Committee at any time in the following
circumstances:
(a) the person becomes an undischarged bankrupt; (b)
the person becomes of unsound mind or his or her estate is liable to be dealt with in any way under law relating to mental health; or
(c)
an event specified for this purpose in the constitution for the Market Advisory Committee occurs; or
(d)
in the IMO’s opinion the person no longer represents the person or class of persons that they were appointed to represent in accordance with clause 2.3.5.
2.3.12. A member of the Market Advisory Committee may resign by giving notice to the IMO in writing. 2.3.13. Where a position on the Market Advisory Committee is vacant at any time, the IMO must make
reasonable endeavours to appoint a person to fill the position, but the Market Advisory Committee may
continue to perform its functions under this clause 2.3 despite any vacancy.2.3.14. The IMO must provide a secretariat for the Market Advisory Committee. The secretariat must:
(a) schedule meetings and maintain the diary of the Market Advisory Committee; and (b) prepare and publish the minutes of each meeting of the Market Advisory Committee. 2.3.15. The secretariat must convene the Market Advisory Committee:
(a)
on any occasion where these Market Rules require a meeting to discuss a Rule Change Proposal or Procedure Change Proposal;
(b)
not less than once every six months so as to raise and discuss issues with respect to the operation of the market; and
(c)
on any occasion when two or more members of the Market Advisory Committee have informed the secretariat in writing that they wish to bring a matter regarding market operation or the operation of these Market Rules before the Market Advisory Committee for discussion.
2.3.16.
Subject to clause 10.2.4, the IMO must provide the members of the Market Advisory Committee any information in its possession that is pertinent to the issues being addressed by the Market Advisory Committee.
2.3.17. The Market Advisory Committee may nominate a Working Group comprised of Representatives of Rule
Participants to assist the Market Advisory Committee in advising the IMO.Market Documents
2.4. Market Rules 2.4.1. The IMO:
(a) is responsible for maintaining the Market Rules; and (b) is responsible for ensuring the development of amendments of, and replacements for, the Market Rules; and (c) may make amending rules (as defined in the Regulations) (“Amending Rules”) in accordance with this Chapter. 2.4.2. The IMO must not make Amending Rules unless it is satisfied that the Market Rules, as proposed to be
amended or replaced, are consistent with the Wholesale Market Objectives.2.4.3. In deciding whether or not to make Amending Rules, the IMO must have regard to the following:
(a) any applicable policy direction given to the IMO under clause 2.5.2; (b) the practicality and cost of implementing the Rule Change Proposal; (c) the views expressed in any submissions on the Rule Change Proposal; (d) the views expressed by the Market Advisory Committee where the Market Advisory Committee met to consider the Rule Change Proposal; and (e) any technical studies that the IMO considers are necessary to assist in assessing the Rule Change Proposal. 2.4.4. The IMO must maintain on the Market Web Site a Rules Change Proposal form which must include:
(a) contact details for proposing rule changes; and (b) information that must be provided in proposing a change, including: i. the name of the person submitting the Rule Change Proposal, and where relevant, details of the organisation that person represents;
ii. the issue to be addressed;
iii. the degree of urgency of the proposed change;
iv. any proposed specific changes to particular rules;
v. a description of how the rule change would allow the Market Rules to better address the Wholesale Market Objectives; and
vi. any identifiable costs and benefits of the change.
2.5. Rule Change Proposals 2.5.1. Any person (including the IMO) may make a Rule Change Proposal by completing a Rule Change
Proposal form. A person other than the IMO must submit the completed Rule Change Proposal form to
the IMO.This includes Rule Participants, the IMO, System Management, the public etc
2.5.2.
The Minister may give a policy direction to the IMO with respect to the development of the market. A policy direction must not be inconsistent with the Wholesale Market Objectives. Before giving a policy direction, the Minister may provide a draft of the proposed policy direction to the IMO and seek the
IMO’s views on it. 2.5.3. If the Minister gives a policy direction, the IMO must develop one or more Rule Change Proposals
implementing the policy direction and progress it using the rule change process in this clause 2.5 and
clauses 2.6 to 2.8.2.5.4. Where the IMO considers that a change to the Market Rules is required to maintain consistency with
any applicable law or regulation or the Wholesale Market Objectives, the IMO is responsible for
developing an appropriate Rule Change Proposal.2.5.5. Where necessary, the IMO may contact the person submitting a Rule Change Proposal and request
clarification of any aspect of the Rule Change Proposal. Any clarification received is to be deemed to
be part of the Rule Change Proposal.2.5.6. Within five Business Days of the later of:
(a) receiving the Rule Change Proposal; and
the IMO must notify the person who submitted the Rule Change Proposal whether or not the IMO will
progress the Rule Change Proposal any further.(b) any clarification under clause 2.5.5, 2.5.7. When it has developed a Rule Change Proposal, or within seven Business Days of receiving a Rule
Change Proposal under clause 2.5.1, the IMO must publish notice of the Rule Change Proposal on the
Market Website. The notice must include:
(a) the date that the Rule Change Proposal was submitted, if applicable; (b)
the name, and where relevant, the organisation, of the person who made the Rule Change Proposal;
(c)
details of the Rule Change Proposal, including relevant references to clauses of the Market Rules and any proposed specific changes to those clauses;
(d)
the description of how the rule change would allow the Market Rules to better address the Wholesale Market Objectives given by the person submitting the proposed rule change;
(e)
whether the Rule Change Proposal will be progressed and the reason why the Rule Change Proposal will or will not be progressed; and
(f) if the Rule Change Proposal will be progressed further:
i. whether the Rule Change Proposal is to be subject to the Fast Track Rule Change Process in accordance with clause 2.5.9 and the reasons for this decision;
ii. if the Rule Change Proposal is subject to the Fast Track Rule Change process, and the Rule Change Proposal did not include proposed specific changes to clauses, the IMO’s proposed Amending Rules to implement the Rule Change Proposal; and
iii. if the Rule Change is not subject to the Fast Track Rule Change process, a call for submissions in relation to the Rule Change Proposal. The due date for submissions must be:
1.
six weeks after the notification or, if that day is not a Business Day, then the next Business Day following that six week period; or
2.
if a longer timeframe is determined in accordance with clause 2.5.10, at a time that is consistent with that timeframe.
2.5.8. Where a Rule Change Proposal that will be progressed relates to a Protected Provision the IMO must
notify the Minister at the same time as it gives the notice described in clause 2.5.7.2.5.9. The IMO may subject a Rule Change Proposal to the Fast Track Rule Change Process if, in its opinion,
the Rule Change Proposal:
(a) is of a minor or procedural nature; or (b) is required to correct a manifest error; or (c)
is urgently required and is essential for the safe, effective and reliable operation of the market or the SWIS.
2.5.10.
Subject to clause 2.5.12, the IMO may at any time after deciding to progress a Rule Change Proposal decide to extend the normal timeframe for processing Rule Change Proposals. If the IMO decides to do so, then it may modify the times and time periods under clauses 2.6 or 2.7 in respect of the Rule
Change Proposal and publish details of the modified times and time periods. 2.5.11. If a Rule Change Proposal was subject to the Fast Track Rule Change Process, and the IMO decides
to extend the timeframe, it must either:
(a) extend the timeframe by no more than 15 Business Days; or (b)
reclassify the Rule Change Proposal as not being subject to the Fast Track Rule Change Process, and must progress it in accordance with clause 2.7.
2.5.12. The IMO must publish a notice of an extension determined in accordance with clause 2.5.10, and must
update any information already published in accordance with clause 2.5.7(f).2.5.13. A notice of extension must include:
(a) the reasons for the proposed extension; (b) the views of any Rule Participants consulted on the extension; (c) the proposed length of any extension; and (d) the proposed work program. Note that the IMO has already published notice of the Rule Change Proposal in accordance with clause 2.5.7, so participants other than those notified by the IMO under clause 2.6.1 can also request that the IMO consult with
(e) the IMO’s assessment of the Rule Change Proposal in light of clauses 2.4.2 and 2.4.3; (f)
a proposal as to whether the Rule Change Proposal should be accepted in the form proposed. The proposal may be that:
i. the Rule Change Proposal be accepted in the proposed form; or
ii. the Rule Change Proposal be accepted in a modified form; or
iii. the Rule Change Proposal be rejected; and
(g) if the IMO proposes to make Amending Rules arising from the Rule Change Proposal:
i. the wording of the proposed Amending Rules; and ii. a proposed date and time the proposed Amending Rules will commence.
2.7.8. Within 20 Business Days of the deadline specified under clause 2.7.6(b), the IMO must prepare and
publish a Final Rule Change Report containing:
(a) the information in the Draft Rule Change Report; (b) all submissions received before the deadline for submissions specified in relation to the relevant draft Rule Change Report under clause 2.7.6(b), a summary of those submissions, and the IMO’s response to the issues raised in those submissions; (c) any further analysis or modification to the Rules Change Proposal; (d) the IMO’s assessment of the Rule Change Proposal in light of clauses 2.4.2 and 2.4.3; (e) a decision by the IMO that: i. the Rule Change Proposal be accepted in the proposed form; or
ii. the Rule Change Proposal be accepted in a modified form; or
iii. the Rule Change Proposal be rejected;
(f) the IMO’s reasons for the decision; and (g) if the IMO decides to make Amending Rules arising from the Rule Change Proposal: i. the wording of the Amending Rules; and
ii. the proposed date and time that the Amending Rules will commence.
2.8. Review of IMO Rule Amendment Decisions, Ministerial Approval and Coming into Force of Rule
AmendmentsIt is proposed that Regulations will be made to give the Energy Review Board the powers contemplated by this clause. This clause will reflect those regulations when made.
2.8.1. A Rule Participant may apply to the Energy Review Board for a Procedural Review of a decision by the
IMO contemplated by clause 2.5.9, 2.6.4(f) or 2.7.8(e) within 10 Business Days of the relevant
decision, on the grounds that the IMO has not followed the rule change process set out in clauses 2.5,
2.6 and 2.7.2.8.2. Following an application for a Procedural Review under clause 2.8.1, if the Energy Review Board finds
that the IMO has not followed the rule change process set out in clauses 2.5, 2.6 and 2.7 the Energy
Review Board may set aside the IMO’s decision and direct the IMO to reconsider the relevant
CodeRule Change Proposal in accordance with the process set out in clauses 2.5, 2.6 and 2.7.2.8.3.
The IMO must submit a Rule Change Proposal, together with the Final Rule Change Report, to the Minister for approval where Amending Rules in the Final Rule Change Report under clause 2.6.4 or 2.7.8 amend or replace a Protected Provision, or, in the IMO’s opinion, would have the effect of
changing the meaning or effect of one or more Protected Provisions. 2.8.4.
Subject to clause 2.8.6, the Minister must consider the Rule Change Proposal within 20 Business Days and decide whether the Market Rules, as amended or replaced by the proposed Amending Rules, are consistent with the Wholesale Market Objectives.
2.8.5. Where a Rule Change Proposal is submitted under clause 2.8.3, the Minister may:
(a) approve the proposed Amending Rules; (b) not approve the proposed Amending Rules; or (c)
send back to the IMO the proposed Amending Rules with any revisions the Minister considers are required to ensure the Market Rules, as amended or replaced by the proposed Amending Rules, are consistent with the Wholesale Market Objectives.
2.8.6. The Minister may extend the time for a decision on a Rule Change Proposal under clause 2.8.4 by a
further period of up to 20 Business Days by notice to the IMO. The Minister may extend the time for a
decision in respect of a Rule Change Proposal more than once.2.8.7. The IMO must publish notice of any extension under clause 2.8.6 on the Market Web Site. 2.8.8. Where the Minister does not make a decision by the original date determined in accordance with
clause 2.8.4, or by an extended date determined in accordance with clause 2.8.6, as applicable, then2.8.9. Where the Minister does not approve the proposed Amending Rules or sends proposed Amending
Rules back to the IMO under clause 2.8.5(c), the Minister must give reasons, and the IMO must publish
notice of the Minister’s decision and the reasons given by the Minister2.8.10. Where the Minister sends proposed Amending Rules back to the IMO in accordance with clause
2.8.5(c), the IMO must:
(a)
publish the revised Amending Rules and call for submissions on the revised Amending Rules within 15 Business Days of publication; and
(b)
provide a revised Final Rule Change Report, including any submissions received on the Minister’s revised Amending Rules to the Minister within 25 Business Days and clauses 2.8.4 to this clause 2.8.10 apply to the revised Final Rule Change Report.
2.8.11. Amending Rules are made:
(a)
For Rule Change Proposals to which clause 2.8.3 applies, when the Minister has either approved, or is taken by clause 2.8.8 to have approved, the Amending Rules; and
(b)
For Rule Change Proposals to which clause 2.8.3 does not apply, when the IMO has decided to make the Amending Rules in accordance with clause 2.6.4(h) or clause 2.7.8(g).
2.8.12. Subject to clause 2.8.2, Amending Rules commence at the time and date determined by the IMO. The
IMO must publish notice of the time and date Amending Rules commence.2.8.13. The following clauses are Protected Provisions: Please note that cross references have not been checked and must be checked before publication of the Rules.
(a) clauses 1.1 to 1.3 and 1.5 to 1.9 ; (b) clauses 2.1 to 2.24, 2.28, 2.31.1, 2.31.3, 2.31.5(a), 2.31.6, 2.34.1 and 2.36.1; (c) clauses 3.15, 3.18.18 and 3.18.19; (d)
clauses 4.1.4 to 4.1.12, 4.1.15 to 4.1.19, 4.1.21, 4.1.22, 4.1.24, 4.1.27, 4.5.10, 4.5.11, 4.5.15 to 4.5.20, 4.13.10, 4.13.11, 4.16, 4.24.1, 4.24.2 and 4.24.12;
(e) clauses 5.2.3, 5.2.7 and 5.5.1; (f) clauses 9.16.3, 9.16.4 and 9.20.2; and (g) clauses 10.1.1, 10.1.2, 10.2.1, 10.3 and 10.4.
2.9. Market Procedures 2.9.1. The IMO must manage the development of, amendment of, and replacement for Market Procedures
which these Market Rules require be developed by the IMO.2.9.2. System Management must manage the development of, amendment of, and replacement for Market
Procedures which these Market Rules require be developed by System Management.2.9.3. Market Procedures
(a) must: i. be developed, amended or replaced in accordance with the process in these Market Rules;
ii. be consistent with the Wholesale Market Objectives; and
iii. be consistent with these Market Rules, the Electricity Industry Act and Regulations; and
(b)
may be amended or replaced in accordance with clause 2.10 and must be amended or replaced in accordance with clause 2.10 where a change is required to maintain consistency with Amending Rules.
2.9.4. The IMO must maintain on the Market Web Site a Procedure Change Submission form. 2.9.5. The IMO must develop an Administration Procedure setting out the procedure for developing and
amending Market Procedures and:
(a)
the IMO must follow the Administration Procedure when developing and approving Procedure Change Proposals, except when producing the first version of the Administration Procedure;
The exception for the Administration Procedure is required as it contains the procedure change process itself.
(b)
System Management must follow the Administration Procedure when developing Procedure Change Proposals; and
(c)
Rule Participants involved in the Procedure Change process must follow the Administration Procedure when assisting the IMO or System Management to develop Procedure Change Proposals.
2.9.6. The IMO must comply with Market Procedures applicable to it. 2.9.7. System Management must comply with Market Procedures applicable to it. 2.9.8. A Rule Participant other than the IMO or System Management must comply with Market Procedures
applicable to it.2.10. Procedure Change Process 2.10.1. The IMO or System Management, as applicable, may initiate the Procedure Change Process by
developing a Procedure Change Proposal.2.10.2. Rule Participants may notify the IMO or System Management, as applicable, where they consider an
amendment or replacement of a Market Procedure would be appropriate.2.10.3. If an Amending Rule requires the IMO or System Management to develop new Market Procedures or to
amend or replace existing Market Procedures, then the IMO or System Management, as applicable, is
responsible for the development of, amendment of or replacement for, Market Procedures so as to
comply with the Amending Rule.2.10.4. Where the Procedure Change Proposal is developed by System Management, System Management
must provide the Procedure Change Proposal to the IMO, and the IMO must publish it.2.10.5. The IMO must publish Procedure Change Proposals that the IMO develops. 2.10.6. A Procedure Change Proposal must include:
(a)
a proposed Market Procedure or an amendment of or replacement for a Market Procedure , indicating the proposed amended words, or a proposed Market Procedure; and
(b)
the reason for the proposed Market Procedure or an amendment of or replacement for a Market Procedure or proposed Market Procedure.
2.10.7.
At the same time as it publishes a Procedure Change Proposal notice, the IMO must publish a call for submissions on that proposal. The due date for submissions must be 20 Business Days from the date the call for submissions is published., Any person may make a submission using a Procedure
Change Submission form. 2.10.8. Within one Business Day after the publication of a Procedure Change Proposal notice in accordance
with clause 2.10.4 or 2.10.5, as applicable, the IMO must notify all members of the Market Advisory
Committee as to whether the IMO considers the Procedure Change Proposal to be significant enough
to require convening the Market Advisory Committee.2.10.9. The IMO must convene a meeting of the Market Advisory Committee concerning the Procedure
Change Proposal before the due date for submissions in relation to the Procedure Change Proposal if:
(a) the IMO considers the procedure change to be significant; or (b)
two or more members of the Market Advisory Committee have informed the IMO in writing that they consider that the Procedure Change Proposal is significant.
2.10.10. Following the closing date for submissions, the IMO or System Management, as applicable, must
prepare a Procedure Change Report on the Procedure Change Proposal.2.10.11. Where the Procedure Change Report is prepared by System Management, System Management must
provide the Procedure Change Report to the IMO, and the IMO must publish it.2.10.12. The IMO must publish Procedure Change Reports that the IMO prepares. 2.10.13. The Procedure Change Report must contain:
(a)
the wording of the proposed Market Procedure or amendment of or replacement for the Market Procedure;
(b)
the reason for the proposed Market Procedure or amendment of or replacement for the Market Procedure;
(c)
all submissions received before the due date for submissions, a summary of those submissions, and the response of the IMO or System Management, as applicable, to the issues raised in those submissions;
(d) a summary of the views expressed by the Market Advisory Committee; (e) in the case of a Procedure Change Proposal developed by the IMO, a proposed date and time for opinion, allow sufficient time after the date of publication of the Procedure Change Report for Rule Participants to implement changes required by it; and
(f)
in the case of a Procedure Change Proposal developed by System Management, a recommendation for a date and time for the Market Procedure, amendment or replacement to commence which, in System Management’s opinion, allows sufficient time after the date of publication of the IMO’s approval of the Procedure Change Proposal under clause 2.10.12, for Rule Participants to implement changes required by it.
2.10.14.
For Procedure Change Proposals published by System Management, the IMO must within 10 Business Days of the publication of the Procedure Change Report make a decision as to whether to approve the Procedure Change Proposal. The IMO may:
(a) approve the Procedure Change Proposal; or (b) reject the Procedure Change Proposal. 2.10.15. Where the IMO approves a Procedure Change Proposal from System Management, it must notify
System Management and the IMO must publish, the following information:
(a) that the Procedure Change Proposal is approved; (b) the IMO’s reasons for the decision; and (c)
a date and time for the Market Procedure, amendment or replacement to commence, which must, in the IMO’s opinion, allow sufficient time after the date of publication of the Procedure Change Report for Rule Participants to implement changes required by it.
2.10.16. Where the IMO rejects a Procedure Change Proposal from System Management:
(a) the IMO must: i. notify System Management; and
ii. publish the following information:
1. that the Procedure Change Proposal is rejected; and
2. the IMO’s reasons for the decision; and
(b) in the case of a Procedure Change Proposal required by an Amending Rule, System Management must submit a revised Procedure Change Proposal in accordance with clause 2.10 that complies with the Amending Rule and is acceptable to the IMO. The provisions of clause 2.10 apply to any revised Procedure Change as if it were a new Procedure Change Proposal by System Management.
Where the Procedure Change Proposal was not required by a Rule Amendment , then System Management has discretion as to whether it wants to revise and resubmit the Procedure Change Proposal or abandon the Participants may also report alleged IMO rule breaches to the body nominated by the Minister to investigate IMO rule breaches, and that body can refer matters to the ERB for consideration.
2.13.1. The Minister may from time to time appoint a person to be responsible for investigating alleged
breaches by the IMO of the Market Rules and Market Procedures.2.13.2. The IMO must monitor other Rule Participants’ behaviour for compliance with the Market Rules and
Market Procedures in accordance with the Monitoring Protocol.2.13.3. The IMO must ensure it has processes and systems in place to allow it to monitor Rule Participants’
behaviour for compliance with the Market Rules and Market Procedures in accordance with the
Monitoring Protocol.2.13.4. A Rule Participant may inform the IMO in writing if it considers that it or another Rule Participant has
breached the Market Rules or a Market Procedure, and may provide evidence of that breach.2.13.5. A Rule Participant may inform the person referred to in clause 2.13.1 in writing if it considers that the
IMO has breached the Market Rules or a Market Procedure, and may provide evidence of that breach.2.13.6. System Management must monitor Rule Participants’ behaviour for compliance with the provisions of
the Market Rules referred to in clause 2.13.9 and Market Procedures developed by System
Management. System Management must report any alleged breaches of those provisions or Market
Procedures to the IMO, in accordance with the Monitoring and Reporting Protocol.2.13.7. System Management must ensure it has processes and systems in place to allow it to monitor Rule
Participants’ behaviour in accordance with clause 2.13.6.2.13.8. If System Management becomes aware of an alleged breach of the Market Rules or Market
Procedures as a result of its monitoring activities, then it must:
(a) record the alleged breach of the Market Rules or Market Procedures; and (b) notify the IMO of the alleged breach in accordance with clause 2.13.4 or, in the case of an alleged 2.13.5.
2.13.9. System Management must monitor Rule Participants for breaches of the following clauses:
(a) clauses 2.34.2, 2.34.2A and 2.34.3; Ensuring standing data is accurate. (b) clauses 3.4.6 and 3.4.8;
Assisting System Management when the power system is in a High-Risk Operating State
(c) clauses 3.5.8 and 3.5.10;
Assisting System Management when the power system is in an Emergency Operating State
(d) clauses 3.6.5 and 3.6.6B;
Network Operators implementing under frequency load shedding plans and complying with manual disconnection instructions from System Management
(e) clauses 3.16.4, 3.16.7, and 3.16.8A;
Rule Participants provide data for MT PASA
(f) clauses 3.17.5 and 3.17.6;
Rule Participants provide data for ST PASA
(g) clausesclause 3.18.2(f);
Rule Participants comply with outage scheduling and approval process
(gA) clauses 3.21A.2, 3.21A.12, and 3.21A.13;
Rule Participants must seek approval of Commissioning Tests and comply with their approved test plans.
(gB) clauses 3.21B.1 and 3.21B.2;
Market Participants follow Resource Plans and Dispatch Instructions.
(k) clause 7.11.7.
Market Participants and Network Operators comply with directions in Dispatch Advisories.
2.13.10. If the IMO becomes aware of an alleged breach of the Market Rules or the Market Procedures, then it must:
(a) record the alleged breach; (b) investigate the alleged breach; (c) where it reasonably believes a breach of the Market Rules or Market Procedures has taken place, issue a warning to the Rule Participant to rectify the alleged breach. The warning must: i. identify the clause or clauses of the Market Rules or the Market Procedures that the IMO believes has been, or are being, breached;
ii. describe the behaviour that comprises the alleged breach;
iii. request an explanation; and
iv. request that the alleged breach be rectified and a time (which the IMO considers reasonable) by which the alleged breach should be rectified; and
(d) record the response of the Rule Participant to the warning.
2.13.11. If the IMO becomes aware of an alleged breach of the Market Rules or the Market Procedures, then it may meet with the relevant Rule Participant on one or more occasions to discuss the alleged breach and possible actions to rectify the alleged breach. 2.13.12. As part of an investigation into alleged breaches of the Market Rules or Market Procedures, the IMO may:
(a) require information and records from Rule Participants; and (b) conduct an inspection of a Rule Participant’s equipment. 2.13.13. Rule Participants must cooperate with an investigation into an alleged breach of the Market Rules or
Market Procedures, including:
(a) providing the IMO with information requested under clause 2.13.12 relating to the alleged breach in a timely manner; and (b) allowing reasonable access to equipment for the purpose of an inspection carried on under clause 2.13.12. 2.13.14. Where a Rule Participant does not comply with clause 2.13.13, the IMO may appoint a person to
investigate the matter and provide a report or such other documentation as the IMO may require. If the
IMO does so, then:
(a) the Rule Participant must assist the person to undertake the investigation and prepare the report or other documentation; and (b) the cost of the investigation and the preparation the report or other documentation must be met by the Rule Participant unless the IMO determines otherwise. Regulations will be made at a later stage dealing with the enforcement arrangements described in the following clauses.
2.13.15. Where the alleged breach relates to a Category A Market Rule (as determined in accordance with the
Regulations) and the IMO is not the Rule Participant that is alleged to have breached the Market Rules,
the IMO must make a decision as to whether a breach has occurred.2.13.16. The IMO may:
(a)
decide a breach has taken place in which case the IMO may issue a penalty notice in accordance with the Regulations; or
(b) decide a breach has not taken place and notify:
i. the Rule Participant that is alleged to have breached the Market Rules; and ii.
where a Rule Participant notified the IMO in accordance with clause 2.13.4, that Rule Participant,
of its decision.
2.13.17.
Where the IMO issues a penalty notice under clause 2.13.16(a), the Rule Participants that received the penalty notice may seek a review of that decision by the Energy Review Board in accordance with the Regulations.
2.13.18. Where:
(a)
the alleged breach relates to a Category B or Category C Market Rule (as determined in accordance with the Regulations); and
(b)
following the investigation referred to in clause 2.13.10(b), the IMO reasonably believes that a breach of the Market Rules has taken place,
the IMO may bring proceedings before the Energy Review Board.
2.13.19. Where the person referred to in clause 2.13.1 receives notice of an alleged breach by the IMO in
accordance with clause 2.13.5, the person referred to in clause 2.13.1 must investigate the alleged
breach of the Market Rules or Market Procedures, and may require information and records from the
IMO.2.13.20. The IMO must cooperate with an investigation referred to in clause 2.13.19. 2.13.21. Following the investigation referred to in clause 2.13.19, where the person referred to in clause 2.13.1
reasonably believes a breach of the Market Rules or Market Procedures has taken place it:
(a) may issue a warning to the IMO to rectify the alleged breach. The warning must : i. identify the clauses of the Market Rules or the Market Procedures that the person referred to in clause 2.13.1 considers have been breached;
ii. describe the behaviour that comprises the alleged breach;
iii. request an explanation; and
iv. request that the alleged breach be rectified and a time (which the person referred to in clause 2.13.1 considers reasonable) by which the alleged breach should be rectified; and
(b)
may meet with the IMO on one or more occasions to discuss the alleged breach and possible actions to rectify the alleged breach.
2.13.22. Where the person referred to in clause 2.13.1 considers that the alleged breach has not been rectified
within the time set out in accordance with clause 2.13.21(a)(iv) it may bring proceedings before the
Energy Review Board.2.13.23. The orders that the Energy Review Board may make for a breach of the Market Rules and the
procedures for the operation of the Energy Review Board are set out in the Regulations.2.13.24.
The IMO may direct a Rule Participant to do or to refrain from doing any thing that the IMO thinks necessary or desirable to give effect or to assist in giving effect to any order of the Energy Review Board.
2.13.25. A Rule Participant must comply with a direction of the IMO given under clause 2.13.24. 2.13.26. The IMO must release a report at least once every six months setting out a summary for the preceding
six months of:
(a) proceedings that have been brought before the Energy Review Board; (b) findings of the Energy Review Board on matters referred to them; (c) orders made by the Energy Review Board; and (d)
civil penalties imposed by the IMO under clause 2.13.16(a), where these have not been set aside by the Energy Review Board.
2.13.27. In considering the circulation of the report under clause 2.13.26 and 2.13.28, the IMO must have regard
to the Wholesale Market Objectives.2.13.28.
In addition to the regular publication described in clause 2.13.26, the IMO may release a report on any one or more matters where the IMO has made a decision under clause 2.13.16(a) or which have been referred to the Energy Review Board, the findings of the IMO and the Energy Review Board, as
applicable, on those matters and any sanctions imposed by the IMO or the Energy Review Board in
relation to those matters.2.13.29.
No Rule Participant or former Rule Participant is entitled to make any claim against the IMO for any loss or damage incurred by the Rule Participant from the publication of any information pursuant to clauses 2.13.26 or 2.13.28 if the publication was done in good faith. No action or other proceeding will
be maintainable by the person or Rule Participant referred to in the publication on behalf of the IMO or
any person publishing or circulating the publication on behalf of the IMO and this clause operates as
leave for any such publication except where the publication is not done in good faith.2.13.30. Claims for confidentiality of information which may be published under clauses 2.13.26 or 2.13.28 must
be dealt with in accordance with the provisions for reporting information in clause 10.2.2.13.31. The IMO must, and is entitled to, provide the reports referred to in clauses 2.13.26 or 2.13.28 to all
Rule Participants and interested parties. However, the IMO is not required to provide a report to such a
person if the IMO considers it is inappropriate in the circumstances, including without limitation, where
there may be confidentiality issues.2.14. Audit 2.14.1. The IMO must appoint one or more Market Auditors that may be used to conduct the audits described
in clause 2.14.2 and 2.14.6(b).2.14.2. The IMO must ensure that the Market Auditor carries out the audits of the matters identified under
clause 2.14.3 no less than annually.2.14.3. The IMO must ensure that the Market Auditor carries out the audits of such matters as the IMO
considers appropriate, which must include:
(a) the compliance of the IMO’s internal procedures and business processes with the Market Rules; (b) the IMO’s compliance with the Market Rules and Market Procedures; (c) the IMO’s market software systems and processes for software management. 2.14.4. The Market Auditor must provide the IMO with a report, and the IMO must within 30 Business Days of
receiving the report either:
(a) accept the report and any recommendations contained in it; or (b)
prepare a separate report setting out the matters raised in the Market Auditor’s report which the IMO accepts and those which it does not accept and setting out the IMO’s reasons for that view.
2.14.5. The IMO must publish the Market Auditor’s report and any report it prepared under clause 2.14.4(b)
within 30 Business Days of receiving the Market Auditor’s report.2.14.6.
In accordance with the Monitoring Protocol, the IMO must at least annually, and may more frequently where it reasonably considers that System Management may not be complying with the Market Rules and Market Procedures:
(a)
require System Management to demonstrate compliance with the Market Rules and Market Procedures by providing such records as are required to be kept under these Market Rules or any Market Procedure; or
(b)
subject System Management to an audit by the Market Auditor to verify compliance with the Market Rules and Market Procedures.
2.14.7. The IMO must annually provide to the Minister a report on System Management’s compliance with the
Market Rules and Market Procedures. The report must contain:
(a) the results of audits performed under clause 2.14.6(b); (b)
the results of any investigations of System Management’s compliance with the Market Rules and Market Procedures carried out by the IMO under clause 2.13.10(b); and
(c) details of any relevant information received under clause 2.14.6(a). 2.15. Monitoring and Reporting Protocols 2.15.1. Prior to Energy Market Commencement, the IMO must develop and implement a Monitoring Protocol. 2.15.2. The purpose of the Monitoring Protocol is to state how the IMO will implement its obligations under
these Market Rules to monitor Rule Participants’ behaviour for compliance with the Market Rules and
Market Procedures.2.15.3. The Monitoring Protocol must specify:
(a)
the IMO’s monitoring processes for assessing compliance with the Market Rules and Market Procedures by Rule Participants;
(b)
a process for System Management to demonstrate compliance with the Market Rules and Market Procedures and audit processes where the IMO requires such demonstration or an audit in accordance with clause 2.14.6;
(c)
a process for Rule Participants to report alleged breaches of the Market Rules or Market Procedures;
(d) processes for investigations into alleged breaches of the Market Rules or Market Procedures; (e)
guidelines for the IMO when issuing warnings about alleged breaches of the Market Rules or Market Procedures to Rule Participants under clause 2.13.10(c); and
(f)
the procedure for bringing proceedings in respect of Category B or C Market Rule breaches before the Energy Review Board.
2.15.4. Prior to Energy Market Commencement System Management must develop and implement a
Monitoring and Reporting Protocol and seek the approval of the IMO for that Monitoring and Reporting
Protocol.2.15.5.
The purpose of the Monitoring and Reporting Protocol is to state how System Management will implement its obligations under these Market Rules to monitor Rule Participant’s behaviour for compliance with the Market Rules in accordance with clause 2.13.6 and with Market Procedures
developed by System Management. 2.15.6. The Monitoring and Reporting Protocol must specify:
(a)
System Management’s monitoring processes for assessing compliance with the Market Rules and Market Procedure by Market Participants; and
(b) the provision of information about breaches or other information the IMO may request to the IMO. 2.15.7. The Monitoring Protocol developed by the IMO, and the Monitoring and Reporting Protocol developed
by System Management are Market Procedures under these Market Rules, and must be developed
and amended in accordance with clauses 2.9 and 2.10.that would implement the recommendations.
Market Monitoring involves three key stages. First, collection and analysis of primary market data including bid
data. This will be done on a regular basis by the IMO. This data is then provided to the ERA. The ERA will
report annually to the Industry Minister on the effectiveness of the market and whether the market objectives are
being met. It will also conduct irregular reviews of market behaviour where anomalous behaviour has been
identified. Findings of these reviews will be provided in a report to the Minister. In both the regular and irregular
reports, recommendations can be made to change the market rules to improve the market’s effectiveness.
2.16.1. The IMO is responsible for collection and primary analysis of data in accordance with this clause 2.16.
The IMO must:
(a) compile the data identified in the Market Surveillance Data Catalogue and provide that data to the Economic Regulation Authority; and (b) analyse the compiled data in accordance with clause 2.16.4 and provide the results of the analysis to the Economic Regulation Authority. 2.16.2. The IMO must develop a Market Surveillance Data Catalogue, which identifies data to be compiled
concerning the market. The Market Surveillance Data Catalogue must identify the following data items:
(a) the number of Market Generators and Market Customers in the market; (b) the number of participants in each Reserve Capacity Auction; (c) clearing prices in each Reserve Capacity Auction and STEM Auctions; (d) Balancing Data prices and other Standing Data prices used in Balancing; (dA) all Reserve Capacity Auction offers; (e) all bilateral quantities scheduled with the IMO;
(g) [Blank]
(gA) all Fuel Declarations;
(gB) all Availability Declarations;
(gC) all Ancillary Service Declarations;
(f) all STEM Offers and STEM Bids, including both quantity and price terms; (h) any substantial variations in STEM Offer and STEM Bid prices or quantities relative to recent past behaviour; (hA) any evidence that a Market Customer has significantly over-stated its consumption as indicated by its Net Contract Position with a regularity that cannot be explained by a reasonable allowance for forecast uncertainty or the impact of Loss Factors. The behaviour by a Market Customer described in clause (hA) is prohibited by clause 6.7.4. This behaviour could be a symptom that a non-EGC generator supplying the Market Customer under a bilateral contract has caused the scheduling of additional energy from the Market Generator’s facilities with the result in real-time that
the Electricity Generation Corporation supplies less energy than it was contracted to supply under its own also be used to ensure that a non-EGC generator can remain committed overnight during periods of low demand ahead of the Electricity Generation Corporation. However, if the Market Customer addresses this over-supply in the STEM then this is acceptable, because to the extent that the Electricity Generation Corporation is scheduled down in the STEM, it will be compensated at the economic value of that energy (as defined by Electricity Generation Corporation STEM Bids). Note that this clause does not place any restrictions as to how generation levels can change relative to a Bilateral Submission (e.g., in the case of the Electricity Generation Corporation, as
(m)
details of Ancillary Service Contracts and Balancing Support Contracts that System Management enters into;
(n) [Blank]
(o)
the number of Rule Change Proposals received, and details of Rule Change Proposals that the IMO has decided not to progress under clause 2.5.6; and
(p)
such other items of information as the IMO considers relevant to the functions of the IMO and the Economic Regulation Authority under this clause 2.16.
2.16.3. The IMO must publish the Market Surveillance Data Catalogue, and must republish this document
whenever it changes.2.16.4. The IMO must undertake the following analysis of the data identified in the Market Surveillance Data
Catalogue to calculate relevant summary statistics:
(a)
where applicable, calculation of the means and standard deviations of values in the Market Surveillance Data Catalogue;
(b) monthly, quarterly and annual moving averages of prices for the STEM Auctions and Balancing; (c) statistical analysis of the volatility of prices in the STEM Auctions and Balancing; (cA) any consistent or significant variations between the Fuel Declarations, Availability Declarations,
and Ancillary Service Declarations for, and the actual operation of, a Market Participant facility in
real-time;(d)
the proportion of time the prices in the STEM Auctions and through Balancing are at each Energy Price Limit;
(e) correlation between capacity offered into the STEM Auctions and the incidence of high prices; (f) correlation between capacity available in the Balancing and the incidence of high prices; and (g)
exploration of the key determinants for high prices in the STEM and Balancing, including determining correlations or other statistical analysis between explanatory factors that the IMO considers relevant and price movements; and
(h)
such other analysis as the IMO considers appropriate or is requested of the IMO by the Economic Regulation Authority.
2.16.5. The IMO must, on request from the Economic Regulation Authority, and in any event at least once
each month, provide the Economic Regulation Authority with the data identified in the Market
Surveillance Data Catalogue and the results of the analysis on that data referred to in clause 2.16.4.2.16.6. Where the Economic Regulation Authority considers that it is necessary or desirable for the
performance of its functions or the functions of the IMO under this clause 2.16, the Economic
Regulation Authority may collect additional information from Rule Participants as follows:
(a)
the Economic Regulation Authority may issue a notice to one or more Rule Participants requiring them to provide specified data to the Economic Regulation Authority by a date (which the Economic Regulation Authority considers to be reasonable);
(b)
Market Participants must provide any information requested by the Economic Regulation Authority by the date specified in the notice; and
Outage planning and scheduling appears in clauses 3.18 - 3.21
7.3.1. System Management must take account of Planned Outages in determining Dispatch Instructions. 7.3.2. System Management must, from the time it is notified of a Forced Outage or Consequential Outage in
accordance with clause 3.21.4, take account of the Forced Outage or Consequential Outage in
determining Dispatch Instructions.7.3.3. [Blank] 7.3.4. System Management must provide to the IMO the following information:
(a)
a schedule of Planned Outages, Forced Outages and Consequential Outages for each Registered Facility of which System Management is aware at that time;
(b) [Blank]
for each Trading Interval of a Trading Day, between 8:00 AM and 8:30 AM on the Scheduling Day prior
to the Trading Day.7.3.5. [Blank] 7.3.6.
If the IMO does not receive the information described in clause 7.3.4 by the required time, it must arrange for System Management to provide the information by alternative means prior to 9:00 AM.
7.3.7. The IMO must confirm receipt of the submissions described in clauses 7.3.4 and 7.3.6 to System
Management within five minutes of receiving the submission.deemed to be the metered schedule.
(e)
the ramp-rate to maintain until the required level of sent out generation or consumption is reached.
7.7.4. System Management must determine which Facilities will be the subject of Dispatch Instructions by
applying the Dispatch Merit Order relevant to the action required, except where:
(a) System Management believes it is not feasible to do so having regard to: i. the Standing Data minimum response times; or
ii. transmission, ramping or other operational constraints; or
(b)
the Dispatch Instruction is issued in connection with an Ancillary Service Contract, a Network Control Service Contract, a Balancing Support Contract or any test of equipment allowed under these Market Rules; or
(c)
the Dispatch Merit Order would otherwise require that System Management curtail a Curtailable Load when, due to limitations on the availability of the Curtailable Load, such curtailment would prevent that Curtailable Load from being available to System Management at a later time when it
would have greater benefit with respect to maintaining Power System Security and Power System
Reliability.
7.7.4A. When selecting Curtailable Loads from the Dispatch Merit Order System Management must select
them in accordance with the Power System Operations Procedure, where the selection process
specified in the Power System Operations Procedure must only discriminate between Curtailable
Loads based on size of the capacity, response time, availability and cost of different Curtailable Loads.7.7.5.
A Dispatch Instruction for a Trading Interval must not be issued earlier than 2:00 PM on the Scheduling Day for the Trading Day on which the Trading Interval falls or later than the end of the Trading Interval.
to hand this control to System Management.
7.8.1. System Management may, by agreement with a Market Participant, maintain operational control over
aspects of a Registered Facility, including, but not limited to:
(a) the starting, loading and stopping of one or more of that Market Participant’s Scheduled Generators; This relates to gas turbines that are directly controlled by System Management. is following the appropriate procedures.
Advisories, Balancing Suspension and Reporting
7.11. Dispatch Advisories 7.11.1.
A Dispatch Advisory is a communication by System Management to Market Participants, Network Operators and the IMO that there has been, or is likely to be, an event that will require a significant deviation from Resource Plans or will restrict communication between System Management and any of
the Market Participants, Network Operators, or the IMO. 7.11.2. System Management must issue a Dispatch Advisory for future potential events if it considers there to This will be a civil penalty provision.
7.11.8. A Market Participant or Network Operator is not required to comply with clause 7.11.7 if such
compliance would endanger the safety of any person, damage equipment, or breach any applicable
law.7.11.9. Market Participants, Network Operators and the IMO must inform System Management as soon as practical if they become aware of any circumstances that might reasonably be expected to result in System Management issuing a Dispatch Advisory. 7.12. Status Reports 7.12.1. System Management must provide a report to the IMO once every three months on the performance of
the market with respect to the dispatch process. This report must include details of:
(a) the incidence and extent of issuance of Dispatch Instructions; (b) the incidence and extent of non-compliance with Dispatch Instructions; (c) the incidence and extent of transmission constraints; (d) the incidence and extent of shortfalls in Ancillary Services, involuntary curtailment of load, High Risk Operating States and Emergency Operating States, together with: i. a summary of the circumstances that caused each such incident; and
Customer to another.
8.3.5. A Metering Data Agent must notify the IMO of any changes to the identities of the Market Participants
whose supply or consumption is measured by a meter not less than 10 Business Days prior to the
Meter Data Agent making a Meter Data Submission that reflects the changed metering arrangements.8.3.6. The IMO must provide a Metering Data Agent with confirmation of a notification made in accordance
with clause 8.3.5 within one Business Day.8.3.7. If a Metering Data Agent fails to receive a confirmation of receipt in accordance with clause 8.3.6 it
must contact the IMO within one Business Day to appraise the IMO of the failure of the IMO to provide
confirmation of receipt and, if necessary, to make alternative arrangements for the submission of the
information.Meter Data Submissions
8.4. Meter Data Submission 8.4.1. A Metering Data Agent must provide meter data submissions to the IMO in accordance with the times
specified in clauses 9.16.2(a), 9.16.2(g) and 9.16.3.such as a phone call or email.
8.4.5. If a Metering Data Agent fails to receive confirmation of receipt of a meter data submission in
accordance with clause 8.4.4, it must contact the IMO by telephone within one hour of failing to receive
confirmation in accordance with clause 8.4.4 to appraise the IMO of the failure of the IMO to provide
confirmation of receipt and, if necessary to make alternative arrangements for the submission of the
information.8.5. Notices of Disagreement and Disputed Meter Data 8.5.1. In the event of a Notice of Disagreement or Notice of Dispute that relates to meter data, the IMO must
notify the Metering Data Agent responsible for that data of the Notice of Disagreement or Notice of
Dispute.8.5.2. A Metering Data Agent must respond to the notification described in clause 8.5.1 in accordance with the Metering Protocol referred to in clause 8.1.3 and must include any revised meter data in the first meter data submission made to the IMO following any correction of the meter data. 8.6. Format of Meter Data Submissions 8.6.1. A meter data submission must comprise:
(a) the identity of the Metering Data Agent; (b) the Trading Month to which the meter data relates; (c) for each interval meter and each Trading Interval in the Trading Month described in (b): i. the identity of the meter;
The IMO will already know which meter is associated with each Market Participant based on registration data.
ii. the MWh quantity measured by the meter; and
iii. whether the quantity described in (ii) is based on an actual meter reading or an estimate, and if based on an estimate, the applicable code describing the reason for the estimate;
(d) [Blank]; and (e) meter adjustments that stem from actual meter data becoming available or from the resolution of a dispute concerning meter data (“meter dispute”) in accordance with the dispute resolution process in the applicable Metering Protocol, including: i. for each interval meter and each Trading Interval in the calendar month to which a meter dispute has resulted in changes to meter data:
1. the MWh quantity for that meter; 2. whether the quantity described in paragraph (1) is based on an actual meter reading or an estimate, and if based on an estimate, the applicable code describing the reason for the estimate; and 3. the applicable code describing the reason for the change in the MWh quantity relative to the previously stated value. ii. [Blank]
iii. [Blank]
8.6.2. The IMO must document:
(a) the format of meter data submissions; (b) [Blank]
in the Settlement Procedure, and Metering Data Agents must comply with that documented Market
Procedure when developing and submitting meter data submissions.Metering Protocol Requirements
8.7. Metering Protocol Requirements 8.7.1. A Metering Data Agent must operate in accordance with a Metering Protocol. As a minimum a
Metering Protocol must prescribe:
(a)
that the Metering Data Agent maintains a Meter Registry tracking a unique identifying number for each meter and the location of that meter, and indicating which Market Participant, if any, is associated with that meter;
(b)
that interval meter data is recorded for a 30 minute period starting on the hour and on the half- hour;
requirements of Wholesale Market operation.
Support of Calculations
8.8. Support of Calculations 8.8.1.
Each Metering Data Agent must provide to the IMO within five Business Days of being requested, any of the meter information held by the Metering Data Agent that is required by the IMO for the purposes of these Market Rules.
funding the capacity costs of these services.
The total payment to the Electricity Generation Corporation for the provision of Ancillary Services is just the total
costs of the relevant services, less the payments made by System Management under Ancillary ServiceContracts.
ASP_Payment(i,m) is determined in accordance with clause 9.9.3;
Load_Following_Share(p,m) is the share of the Cost_LF(m) allocated to Market Participant p in
Trading Month m, where this is to be determined by the IMO using the methodology described
in clause 3.14.1;
Reserve_Cost_Share(p,m) is defined in clause 9.9.2(b);
Consumption_Share(p,m) is the proportion of consumption associated with Market Participant
p for Trading Month m determined by the IMO in accordance with clause 9.3.7;
Capacity_LF(m) is the total Load Following service payment cost for Trading Month m as
specified by the IMO under clause 3.22.1(a);
Availability_Cost_R(m) is the total Spinning Reserve availability payment costs, excluding Load
Following costs, for Trading Month m, as calculated under clause 9.9.2(c);
Availability_Cost_LF(m) is the Load Following availability payment costs for Trading Month m,
as calculated under clause 9.9.2(d); and
d(p,i) is 1 if ASP i corresponds to Market Participant p and zero otherwise; services payment costs for Trading Month m as specified by the IMO under clause 3.22.1(g).
9.9.1A. The Ancillary Service settlement amount for Trading Month m for Rule Participant k where Rule
Particant k is not a Market Participant is d(k,i) × ASP_Payment(i,m) where d(k,i) = 1 if ASP i
corresponds to Rule Participant k and zero otherwise and ASP_Payment(i,m) is determined in
accordance with clause 9.9.3.9.9.2. The following terms related to Ancillary Service availability costs:
(a) the total availability cost for Trading Month m: Availability_Cost(m) =
0.5 × (Margin_Peak(m) × Sum(d∈D,t∈Peak,MCAP(d,t)
× (Capacity_R_Peak(m) – Sum(i∈I,ASP_SRQ(i,t)))))
+ 0.5 × (Margin_Off-Peak(m) × Sum(d∈D,t∈Off-Peak,MCAP(d,t)
× (Capacity_R_Off-Peak(m) – Sum(i∈I,ASP_SRQ(i,t)))))
+ Sum(i∈I,ASP_SRPayment(i,m))+ Sum(i∈I,ASP_LFPayment(i,m))
(b)
the Spinning Reserve Cost Share for Market Participant p, which is a Market Generator, for Trading Month m:
Reserve_Cost_Share(p,m) =
0.5 × (Margin_Peak(m) × Sum(d∈D,t∈Peak,MCAP(d,t)
× Reserve_Share(p,t)
× (Capacity_R_Peak(m) – Sum(i∈I,ASP_SRQ(i,t)) - 0.5 LFR(m)))) + 0.5 × (Margin_Off-Peak(m) × Sum(d∈D,t∈Off-Peak,MCAP(d,t)
× Reserve_Share(p,t)
× (Capacity_R_Off-Peak(m) – Sum(i∈I,ASP_SRQ(i,t))- 0.5 × LFR(m))))
+ Sum(t∈Peak and Off_Peak, Reserve_Share(p,t)
× Sum(i∈I,ASP_SRPayment(i,m) / TITM))
due to it not having interval meters.
• the values of MCAP, UDAP, and DDAP;
viii(A). in the case of the Electricity Generation Corporation the MWh quantity of non- compliance;
ix. details of amounts calculated for the Market Participant under clauses 9.7 to 9.14 with respect to:
1. Reserve Capacity settlement;
2. Balancing settlement;
3. Ancillary Services settlement
4. Commitment and Outage Compensation settlement
4A. Non-Compliance Cost settlement; 5. Reconciliation settlement; 6. Network Control Service settlement; and 7. Fee settlement; and 8. Net Monthly Non-STEM Settlement Amount; x. details of any Capacity Credits allocated to the Market Participant in a Capacity Credit Allocation Statement made by another Market Participant in accordance with clauses 9.4 and 9.5;
xi. details of any Capacity Credits allocated to another Market Participant in a Capacity Credit Allocation Submission made by the Market Participant in accordance with clauses 9.4 and 9.5;
xii. details of any reductions in payments in the preceding Trading Month under clause 9.24.3 as a result of a Market Participant being in Default;
xiii. details of any payments to the Market Participant as a result of the IMO recovering funds not paid to the Market Participant in previous Trading Months under clause 9.24.3 as a result of a Market Participant being in Default;
account details.
9.22.5. Unless otherwise authorised by the IMO, all Rule Participants must use the EFT facility nominated by
the IMO under clause 9.22.4 for the purpose of settlements under these Market Rules and the
payment of Market Participant Fees to the IMO to the extent nominated by the IMO.9.22.6. If an Invoice indicates that a Rule Participant owes an amount to the IMO, then the Rule Participant
must pay the full amount to the IMO (in cleared funds) by 10 AM on the date specified in the Invoice in
accordance with clause 9.16.1(b), 9.16.2(e), and 9.16.4(d) (as applicable), whether or not it disputes
the amount indicated to be payable.The clause 9.16.1(b) pertains to weekly STEM settlement, clause 9.16.2(e) to monthly non-STEM settlement, and clause 9.16.4(d) pertains to periodic settlement adjustments. Note that the IMO could choose to align the adjusted STEM settlement date with the date of a normal monthly STEM settlement.
9.22.7. Late payments by Market Participants accrue interest calculated in accordance with clause 9.1.3. 9.22.8. If an Invoice indicates that the IMO owes an amount to a Rule Participant, then the IMO must pay the
full amount to the Rule Participant (in cleared funds) by 2 PM on the date specified in the Invoice in
accordance with clause 9.16.1(b), 9.16.2(e), and 9.16.4(d) (as applicable), except as provided for in
clause 9.24.9.22.9. The IMO must establish, in its books, a separate fund in which it will credit all Service Fee Settlement
Amounts payable to the IMO under these Market Rules.9.22.10. The Service Fee Settlement Amount owing to the IMO will be taken to have been paid when it is
transferred into the account established by the IMO for the purpose of meeting its obligations under
clause 9.22.9.9.22.11. The IMO may apply money from the fund established under clause 9.22.9 to meet the costs incurred in
carrying out its functions or obligations under these Market Rules and performing the services
contemplated by clause 2.22.1 or in connection with doing so.Default and Settlement in Default Situations
9.23. Default Note that the IMO can, under clause 2.41.4, notify a Market Participant of its Trading Margin at any time, which provides the IMO the capability to warn Market Participants that they are approaching a situation where a Margin Call may be given, before that situation is reached. This approach is used in the National Electricity Market and has been used to informally remedy situations before a Margin Call is required.
9.23.1. For the purposes of these Market Rules, a “suspension event” occurs in relation to a Market Participant if:
(a)
the Market Participant fails to make a payment under these Market Rules before the time it is due;
(b) the Market Participant is in breach of a Prudential Obligation; (c)
the IMO has drawn on a Credit Support in relation to the Market Participant and payment under the Credit Support is not received by the IMO within 90 minutes of being requested;
time of the disgorgement.
9.24.3. Notwithstanding anything else in these Market Rules, if at any time the total amount received by the IMO from Rule Participants in cleared funds (“Total Amount”) is not sufficient to make the payments which the IMO is required to make under these Market Rules (for example, as a result of default by one or more Rule Participants), then the IMO’s liability to make those payments is limited to the Total
Amount. The IMO must apply the Total Amount as follows:
(a) first, the IMO must apply the Total Amount to satisfy: i. payment of Revenue Requirement Settlement Amounts to the IMO, System Management and the Economic Regulation Authority (including as contemplated by clause 9.22.10);
ii. payments which the IMO is required to make under Supplementary Capacity Contracts or to a provider of Ancillary Services holding an Ancillary Service Contract with System Management; and
iii. payments which the IMO is required to make under Network Control Service Contracts; and
Clause (i) relates to payments required to support the operation of the market while clauses (ii) and (iii) relate to payments to parties that are not market participants, which the IMO will legally be obliged to make.
iv. funds required to be disgorged or repaid by the IMO as contemplated by clause 9.24.2; and
make that change in the past.
(b) instructions as to how to initiate a Rule Change Process and Procedure Change Process. (c) details of all Rule Participants including: i. name;
ii. mailing address, telephone and facsimile number;
iii. the name and title of a contact person;
iv. details of applicable licenses held;
v. applicable Rule Participant classes;
vi. applicable Market Participant classes; and
vii. names and capacities of Registered Facilities;
(d) the precise basis for determining the Bank Bill Rate; (e) details of bid, offer and clearing price limits as approved by the Economic Regulation Authority including: i. the Maximum Reserve Capacity Price;
ii. the Maximum STEM Price;
iii. the Alternative Maximum STEM Price;
iv. the Minimum STEM Price; and
v. the Maximum Shutdown Price,
including rules that could cause different values to apply at different times;
STEM Bid and STEM Offer prices are limited by the Maximum, Alternative Maximum and Minimum STEM Prices.
These also limit the maximum STEM Clearing Price and MCAP, UDAP and DDAP.
(f) the following Reserve Capacity information (if applicable): i. Requests for Expressions of Interest described in clause 4.2.3 for the previous five Reserve Capacity Cycles;
ii. the summary of Requests for Expressions of Interest described in clause 4.2.7 for the previous five Reserve Capacity Cycles;
iii. the Reserve Capacity Information Pack published in accordance with clause 4.7.2 for the previous five Reserve Capacity Cycles;
iv. the total amount of Capacity Credits held by each supplier of Capacity Credits;
Which equals the quantity sold.
5. where the STEM was not suspended, the STEM Clearing Price;
ii. for each Trading Interval in each completed Trading Week during the 12 calendar months ending on the last day of the calendar month two months prior to the current calendar month:
1. the STEM Offers by Market Participant; 2. the STEM Bids by Market Participant; 3. the quantity bought or sold in the STEM by Market Participant; and 4.
the Fuel Declaration, Availability Declaration and, if applicable, Ancillary Service Declaration made by the Market Participant;
(j) for each Trading Interval in each completed Trading Day in the previous 12 calendar months the following dispatch summary information: i. the values of MCAP, UDAP and DDAP;
ii. the Load Forecasts prepared by System Management in accordance with clause 7.2.1;
iii. the sum of the Metered Schedule load for all Non-Dispatchable Load, Dispatchable Load, Interruptible Load and Curtailable Load;
iv. estimates of the energy not served due to involuntary load curtailment; and
v. any shortfalls in Ancillary Services;
(k) any Market Advisories and Dispatch Advisories released in the previous 12 months; (l) Loss Factors for each network connection point in accordance with clause 2.27; (m) the most current Statement of Opportunities Report; (n) the medium term PASA report described in clause 3.16.9; (o) the short-term term PASA report described in clause 3.17.2;
Market Customer’s Maximum Consumption Capability.
iv. the Metering Data Agent for the Market Customer;
v. the metering points at which the quantity of electricity, delivered to the Market Customer is to be measured;
vi. the identity of metering points serving Intermittent Loads that are Non-Dispatchable Loads;
vii. for each metering point identified in (ivvi) the maximum allowed level of Intermittent Load, where this cannot exceed the quantity in (iii);
viii. for each metering point identified in (vi) the maximum level of net consumption at that meter which is not separately metered and which is not Intermittent Load; and
ix. for each metering point identified in (vi) the separately metered generating systems and loads behind that meter which are not to be included in the definition of that Intermittent Load.
(g) for an Interruptible Load: i. the Market Customer’s nominated maximum consumption quantity, in units of MWh per Trading Interval;
ii. evidence that the communication and control systems required by clause 2.36 are in place and operational;
iii. real-time telemetry capabilities;
iv. the maximum amount of load that can be interrupted;
v. the maximum duration of any single interruption;
vi. the capability to provide each of the following Ancillary Services as a function of consumption:
1. Spinning Reserve.
2. [Blank]
No response time needs to be specified as Interruptible Loads response automatically to frequency drops.
vii. the Metering Data Agent for the facility;
viii. the single line diagram for the facility, including the locations of transformers, switches, operational and settlement meters;
ix. the network nodes at which the facility can connect;
x. the short circuit capability of facility equipment;
xi. whether the Interruptible Load is an Intermittent Load;
xii. if the Interruptible Load is an Intermittent Load, the maximum allowed level of Intermittent Load, where this cannot exceed the quantity in (i);
xiii. if the Interruptible Load is an Intermittent Load, the maximum level of net consumption behind the meter associated with the Interruptible Load which is not separately metered and which is not Intermittent Load; and
xiv. if the Interruptible Load is an Intermittent Load, the separately metered generating systems and loads behind that meter associated with the Interruptible Load which are not to be included in the definition of that Intermittent Load.
(h) for a Curtailable Load: i. the Market Customer’s nominated maximum consumption quantity, in units of MWh per Trading Interval;
ii. evidence that the communication and control systems required by clause 2.36 are in place and operational;
iii. the maximum amount of load that can be curtailed;
the technology used.
(j) [Blank] (k) For each Registered Facility: i. Reserve Capacity information including:
1. the most recent Certified Reserve Capacity of the facility; 2. the Capacity Credits held by the facility; 3. the Reserve Capacity Obligation Quantity of the facility at 41oC (if applicable); 4. the Reserve Capacity Obligation Quantity of the facility at 45oC (if applicable); 5. for Interruptible Loads and Curtailable Loads, the maximum number of times that interruption can be called during the term of the Capacity Credits; 6. the method to be used for determining the ambient temperature at the site of the facility (if applicable); and 7. for each Short Term Special Price Arrangement and Long Term Special Price Arrangement associated with the facility, the number of Capacity Credits covered, the Special Reserve Capacity Price to be applied, and the expiration date and time of the Special Price Arrangement. ii. Network Control Service information including:
1. limits on the availability of a facility; 2. the Monthly Availability Payment for the facility; and 3. the identity of the Network Operator required to fund the Monthly Availability Payment; and iii. the Facility Dispatch Tolerance;
(l) For each Market Customer: i. the Individual Reserve Capacity Requirement for the Market Customer;
ii. a list of Non-Temperature Dependent interval meters; and
iii. a Standing STEM Submission (if provided by the Market Participant) comprising for each Trading Interval for a Trading Week:
1. a Fuel Declaration; 2. an Availability Declaration; 3.
if the Market Participant is a provider of Ancillary Services, an Ancillary Service Declaration;
4. a Portfolio Supply Curve; and 5. a Portfolio Demand Curve; and
(m) For each Intermittent Facility, whether it is exempted from funding Spinning Reserve costs.
would ever be applied.
Step 4: If all offers in the set of active offers have been accepted but the capacity requirements of Availability Class “a” have not been covered, then record the difference as the capacity shortfall for Availability Class “a”. Step 5: Remove all offers accepted in Step 3 from the set of active offers.
Step 6: If a = 4 then go to Step 8A otherwise increase a by 1.
Step 7: Add all offers from Availability Class “a” to the set of active offers.
Step 8: Return to Step 2A.Step 8A: In the case of the auction only:
• The Reserve Capacity Price must equal the price of the highest priced offer accepted; and •
In the special case where the Reserve Capacity Price is zero and there are offers with a price of zero that have not been accepted, then accept those offers with zero price.
Step 9: Report the offers accepted
Step 10: For each Availability Class report the capacity shortfall.
• In the case of testing bilateral schedules, this indicates the amount to be procured in the auction. •
In the case of the reserve capacity auction, this indicates the amount to be procured through supplementary capacity auctions.
Step 11: End.
In the case of the auction only:
• While leaving the Reserve Capacity Price unchanged, the IMO must exchange one or more offers not accepted for one or more offers accepted in the auction if
o the total capacity scheduled in the auction exceeds the Reserve Capacity Auction Requirement
by more than 100 MW;o the Reserve Capacity Price exceeds zero, o the exchange produces the maximum possible reduction in the total value of offers accepted; o the exchange does not create an overall Reserve Capacity shortfall where none existed; o in the event that a capacity shortfall exists in one or more Availability Classes, the exchange will not shift a shortfall from an Availability Class with low availability to an Availability Class with high availability; and
The previous clause ensures that were we to have a shortage in Availability Class n we do not resolve that shortage by creating a shortage in Availability Class n-1, as this would make the impact of the shortage worse.
o this would not result in an existing facility, or a facility under construction being excluded.
enhancements to satisfy environmental restrictions.
USCPI[t] is a forecast, made in year t-x, of the Consumer Price Index - All Urban
Consumers (CPI-U) for the United States of America midway through year t as compiled
by the United States Bureau of Labor Statistics.
USCPI[t-x] is the actual value of the Consumer Price Index - All Urban Consumers (CPI-
U) for the United States of America midway through year t-x as compiled by the United
States Bureau of Labor Statistics.
and Appendix 4A.
Loads and d(w,i) for Intermittent Loads such that: d(v,i))
The first three terms in X(i) reflect the IRCR for Market Customer i associated with meters and intermittent loads .
The last two terms are the contribution of new meters.
STEP 10: The Individual Reserve Capacity Requirement of Market Customer i for Trading Month n of a Capacity
Year equals (X(i) × RR/Y) where
• Y = Sum(i,X(i)) • RR is the Reserve Capacity Requirement (as modified in accordance with clause 4.28.11A). This equation should generally have the effect that as demand grows during a year, the monthly cost of reserve capacity associated with load that has existed all year will decline. Note also that if a load disappears then the reserve capacity it funded will be allocated amongst all Market Customers in proportion to their capacity
requirements.
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