Publication of explanations from Market Participants under clause 2.16.9D of Wholesale Electricity Market Rules

Under clause 2.16.9B of the Wholesale Electricity Market Rules, where the IMO concludes that:

(a)        prices offered by a Market Generator in its Portfolio Supply Curve may not reflect the Market Generator’s reasonable expectation of the short run marginal cost of generating the relevant electricity;

(aA)      prices offered by a Market Generator in its Balancing Submission may exceed the Market Generator’s reasonable expectation of the short run marginal cost of generating the relevant electricity; or

(b)        prices offered by a Market Generator in its LFAS Submission may exceed the Market Generator’s reasonable expectation of the incremental change in short run marginal cost incurred by the LFAS Facility in providing the relevant LFAS,

and the IMO considers that the behaviour relates to market power, the IMO must:

(c)        as soon as practicable, request an explanation from the Market Participant which has made the relevant STEM Submission, Balancing Submission or LFAS Submission; and

(d)        advise the Economic Regulation Authority of its conclusions. The IMO’s advice must outline the reasons for the IMO’s conclusions.

Clause 2.16.9D requires the IMO to publish a Market Participant’s response to the IMO’s request for an explanation under clause 2.16.9B(c).

Clauses 2.16.9E and 2.16.9F require the Economic Regulation Authority to investigate and to publish the results of its investigation within six months after receiving the IMO’s advice under clause 2.16.9B(d).  The Economic Regulation Authority may extend the timeframe for its investigation by further periods of up to six months.

Vinalco Energy Pty Ltd (No 1)

Current Status: The Economic Regulation Authority has completed its investigation and published its findings. 

Date  Relevant Details 
18/06/14 The IMO requested an explanation from Vinalco Energy under clause 2.16.9B(c).
20/06/14 Vinalco Energy provided the explanation requested under clause 2.16.9B. The explanation is available here.
23/06/14 The IMO advised the Economic Regulation Authority of its conclusions under clause 2.16.9B(d).
19/12/14 The Economic Regulation Authority advised the IMO that it had extended the investigation timeframe from 23/12/14 to 30/04/15.  The IMO’s extension notice is available here.
29/04/15  The Economic Regulation Authority advised the IMO that it had extended the investigation timeframe from 30/04/15 to 30/06/15.  The IMO’s extension notice is available here
29/06/15  The Economic Regulation Authority advised the IMO that it had extended the investigation timeframe from 30/06/15 to 30/10/15. The IMO's extension notice is available here
30/10/15  The Economic Regulation Authority has completed its investigation and published its findings. A copy of the ERA's notice is available here 

Vinalco Energy Pty Ltd (No 2)

Current Status: The Economic Regulation Authority has completed its investigation and published its findings.

Date  Relevant Details 
  22/07/14 The IMO requested an explanation from Vinalco Energy under clause 2.16.9B(c).
  24/07/14 Vinalco Energy provided the explanation requested under clause 2.16.9B. The explanation is available here
  28/07/14 The IMO advised the Economic Regulation Authority of its conclusions under clause 2.16.9B(d).
  19/12/14 The Economic Regulation Authority advised the IMO that it had extended the investigation timeframe from 28/01/15 to 30/04/15.  The IMO’s extension notice is available here.
 29/04/15 The Economic Regulation Authority advised the IMO that it had extended the investigation timeframe from 30/04/15 to 30/06/15.  The IMO’s extension notice is available here.
 29/06/15 The Economic Regulation Authority advised the IMO that it had extended the investigation timeframe from 30/06/15 to 30/10/15. The IMO's extension notice is available here
30/10/15  The Economic Regulation Authority has completed its investigation and published its findings. A copy of the ERA's notice is available here