FCESS Cost Review

Energy Policy WA published the Exposure Draft of WEM Amending Rules (FCESS Cost Review Amendments). This included proposed WEM Amending Rules to: 

• require Market Participants to specify reasonable Start Decision Cutoff times in their Real-Time Market Submissions;

• clarify that Metered Schedules for Scheduled Facilities, Semi-Scheduled Facilities and Non-Scheduled Facilities are Public Information;

• implement changes to the market power mitigation framework to improve its effectiveness and improve market efficiency, by ensuring Market Participants’ offers reflect their efficient variable costs;

• make the current In-Service Capacity Only Scenario (which excludes all capacity offered as Available Capacity) the Reference Scenario;

• rename the current Reference Scenario (which includes any Available Capacity for which the relevant Start Decision Cutoff has not yet passed) the Available Capacity Scenario;

• impose an obligation on Market Participants who offer capacity as Available Capacity to monitor Pre-Dispatch Schedules and Dispatch Schedules for shortfalls in energy, Contingency Reserve Raise or Regulation Raise, and move capacity from Available Capacity to In-Service Capacity as required to alleviate any shortfalls;

• require Market Participants with Facilities accredited for RoCoF Control Service to offer their capacity into the Real-Time Market;

• introduce more efficient tiebreak methods for FCESS and energy;

• remove the payment of FCESS Uplift Payments for the provision of RoCoF Control Service;

• provide an alternative method of compensation (through Energy Uplift Payments) for Facilities constrained on by AEMO to provide RoCoF Control Service only;

• provide for Energy Uplift Payments for Facilities that are constrained on by AEMO during a period covered by a Low Reserve Condition Declaration;

• clarify the requirements for the high and low forecast Scenarios in terms of the treatment of Available Capacity;

• clarify that Energy Uplift Payments are based on In-Service Capacity Price-Quantity Pairs in Real-Time Market Offers only;

• modify the FCESS Uplift Payment calculations to avoid over-compensating FCESS providers when their enablement losses are partially or completely covered by other Real-Time Market payments;

• implement minor error corrections and enhancements across the WEM Rules.