The Market Procedure: Maximum Reserve Capacity Price is a Market Procedure which states the method that the Australian Energy Market Operator (AEMO) must use in determining the Benchmark Reserve Capacity Price (BRCP) in each Reserve Capacity Cycle.
Under the Wholesale Electricity Market Rules, the ERA is responsible for reviewing the Market Procedure for the calculation of the BRCP at least once every five years.
After consulting with the Market Advisory Committee Working Group established for the review of the Market Procedure, the ERA limited the scope of the review to the calculation of the cost of capital in the Market Procedure. Limiting the scope allows the ERA to fast-track the amendment process, with the aim to publish a revised Market Procedure in time for AEMO to apply to the calculation of the BRCP this year for the 2023/24 Reserve Capacity Cycle.
The ERA released the draft procedure change proposal on 15 September 2020. The ERA invites comments on this paper by 4:00pm WST Wednesday 14 October 2020.
As per clause 2.10.7 of the Wholesale Electricity Market Rules submissions should be made using the form available on the Market Website. We would prefer to receive your submission form via email. More details on how to make a submission are available in the procedure change proposal.