Metering, Settlements & Settlements Residue Auction
NEMMCO registers, accredits and audits a range of metering services provided by various metering service providers. These service providers are responsible for measuring the volume of electricity supplied, validating the data from the meters, applying distribution loss factors and forwarding the information to NEMMCO for use in calculating and preparing accounts for financial settlement.
Metering documentation includes:
See also:
NEMMCO calculates the financial liability of all market participants on
a daily basis and settles transactions for all trade in the NEM weekly. This involves NEMMCO collecting all money due for electricity purchased from the pool from market customers, and paying generators for the electricity they have produced.
NEMMCO has strict prudential arrangements and a robust risk management programme in place. The settlement process involves determining financial liabilities, issuing accounts, and settling amounts payable and receivable for electricity sold to and purchased from the pool.
Settlements documentation includes:
SETTLEMENTS RESIDUE AUCTION
Inter-Regional Settlement Residue arises in the NEM because the amount required to be paid by Market Customers to NEMMCO in respect of spot market transactions will generally differ from the amount required to be paid by NEMMCO to Market Generators for those spot market transactions.
Inter-Regional Settlement Residue is the difference between the value of energy in one region and the value of that energy once it has been transferred to another region. This difference in value is primarily due to the price difference between regions. The price differences can be due to the applications of inter-regional transmission constraints or (to a lesser extent) the marginal loss factors that apply between regions.
The Settlement Residue Auctions are intended to improve the efficiency of the NEM by promoting inter-regional trade. By making the settlements residue available to the market place, the risks of trading between regions can be better managed.
Details of the auction results and all relevant background material are available below.
For further information on the Settlement Residue Auction, please contact: John Wormald, Head of Market Operations Performance.
SRA documentation includes general information:
and auction specific information
SRA Work in Progress
