The Minister for Energy has made the Wholesale Electricity Market Amendment (Price Ceiling) Rules 2024 to introduce a temporary FCESS Clearing Price Ceiling, which will apply from 22 May 2024 to 22 November 2024.
The Essential System Service costs in the Wholesale Electricity Market (WEM) have increased significantly since the start of the new WEM on 1 October 2023.
This interim solution is required to mitigate these significant cost increases in the short-term while an investigation into the underlying causes of the cost increases progresses.
In addition, the date by which the Economic Regulation Authority (ERA) is required to determine the next Energy Price Offer Ceiling is extended to 1 January 2025 to allow for the completion of the above investigation and to determine whether the methodology for setting the Energy Offer Price Ceiling also needs to be re-examined.
Notice of the amendments was published in the Government Gazette on Friday 17 May 2024.
