On 20 December 2007 the Australian Energy Market Commission amended the National Electricity Rules (NER) by making the National Electricity Amendment (Registration of Foreign Based Persons and Corporations as Trader Class Participants) Rule No. 10. Rule 10 amended the eligibility criteria for persons wishing to register as Traders and necessitated changes to the Settlement Residue Auction Rules.
In response to the introduction of Rule 10 NEMMCO amended the Settlement Residue Auction Rules. Changes to the Auction Rules entailed:
- The eligibility criteria was amended;
- The requirement for the appointment of an Agent has been accommodated in the Auction Participation Agreement, which is now designed to function with or without the appointment of an Agent; and
- The requirement that a foreign-based Trader and its Agent be jointly and severally liable has been inserted in the Auction Participation Agreement.
In addition, to the above changes, NEMMCO made a number of miscellaneous alterations to the Auction Rules. The miscellaneous changes were:
- The eligibility criteria have been streamlined;
- A requirement that Auction Participants demonstrate that they continue to satisfy the eligibility criteria, including not being a retail client, has been included:
- Clarification to the wording of concurrent auctions;
- The assignment clause has been amended to permit a seamless transition from NEMMCO to AEMO without the need for counter party consents;
- A number of errors in the text and the cross-referencing have been corrected; and
Unnecessary repetition with respect to defined terms has been removed.
Between May - July 2008, NEMMCO undertook a full consultation of the proposed changes to the Settlement Residue Auction Rules with the result no submissions were received from Participants on the matter.
At its meeting of 8 August 2008 the Settlement Residue Committee approved the changes to the Settlement Residue Auction Rules.
For further information regarding the document please contact John Wormald, Head of Market Operations Performance.
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Auction Rules - 12 Aug 2008 |