The ERA monitors how effectively the Wholesale Electricity Market meets the market objectives. This includes monitoring prices offered by market generators and investigating whether participants’ behaviour is related to market power.
On 26 July 2017, the ERA notified the Electricity Generation and Retail Corporation, trading as Synergy, that it had commenced an investigation into price-quantity offers submitted by Synergy in the Balancing Market.
Pursuant to clause 2.16.9B(aA) of the Wholesale Electricity Market Rules, for the trading period since 31 March 2016, the ERA is investigating whether:
- Synergy’s price-quantity offers may have exceeded its reasonable expectation of the short run marginal cost of generating the electricity
- the behaviour relates to market power
In its notification to Synergy on 26 July 2017, the ERA requested an explanation from Synergy for its pricing behaviour. This is a requirement of clause 2.16.9B of the Market Rules.
Synergy’s explanation is available below.
The ERA is continuing its investigation. It has extended the deadline to complete the investigation three times: on 25 January 2018 to 26 July 2018, on 26 July 2018 to 25 January 2019, and on 22 January 2019 to 29 April 2019. These extensions are allowed under the Market Rules.