The ERA observes the behaviour of participants in the competitive Balancing Market and Load Following Ancillary Services Market, as well as in the Short Term Energy Market. The behaviour of participants is actively monitored by the ERA, in conjunction with the Australian Energy Market Operator, to ensure generators offer their electricity at prices that reflect their expected Short Run Marginal Cost (SRMC) of generation.
As SRMC was not defined in the Market Rules, in 2008 the ERA prepared the following documents to provide a workable description of the concept.
