The Wholesale Electricity Market Rules and the Gas Services Information Rules set out the requirement that the Australian Energy Market Operator’s (AEMO) allowable revenue and forecast capital expenditure must consist only of forecast costs that are approved by the ERA. Once approved, AEMO can recover approved costs from market participants through market fees. These costs are eventually passed through to consumers.
2022-2025 Allowable Revenue and Forecast Capital Expenditure
On 29 October 2021, the ERA published a guideline to inform AEMO funding proposals under WEM Rules and GSI Rules.
AEMO’s funding is approved by the ERA for a three-year allowable revenue period. However, the WEM and GSI Rules also allow AEMO to make additional funding proposals within an allowable revenue period. The guideline is intended to be used for both the three-year funding proposals and for any additional in-period funding proposals.
The ERA has prepared this guideline in accordance with new transitional provisions to the WEM Rules and GSI Rules published on 29 October 2021.
