The ERA is required to review the minimum Short Term Energy Market (STEM) price each year and determine, based on the Wholesale Electricity Market Rules review criteria, if the minimum STEM price is appropriate. The minimum STEM price is the lowest price that electricity can be offered at in the Wholesale Electricity Market’s balancing market. If the ERA determines that the minimum STEM price is either too high or too low, then a new value must be determined that will apply from the effective date published in the ERA’s final determination.
On 7 February 2022, the ERA released a notice inviting submissions from stakeholders to inform its 2022 review of the minimum STEM price. The consultation period closed on Tuesday 8 March 2022. The ERA received three submissions in response to the notice which are available below.