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.
The ERA undertook two rounds of consultation with stakeholders to inform its 2022 determination on the minimum STEM price. In February 2022, the ERA invited stakeholders to comment on whether they considered the current minimum STEM price is appropriate. On 31 May 2022, the ERA released its draft determination report that the current minimum STEM price is appropriate for stakeholder consultation.
The ERA has published its final determination report for the 2022 review concluding that the minimum STEM price of $1,000/MWh is appropriate and will remain unchanged.