The Australian Competition and Consumer Commission has issued four decisions on changes to the National Electricity Code.
"These decisions will improve the administration of the national electricity market", Mr Rod Shogren, Commissioner responsible for energy matters, said today.
The Goods and Services Tax determination confirms the ACCC's earlier decision to allow prices in the electricity wholesale spot market to be quoted as exclusive of GST.
"The ACCC requires prices to be GST-inclusive when displayed to end consumers. However, the ACCC accepts that GST-exclusive electricity spot prices are consistent with the ACCC's position on auctions as outlined in the New Tax System pricing guidelines. Auction prices may be GST-inclusive or GST-exclusive as long as the basis of the bidding is made known to all participants. GST-exclusive spot prices will simplify trading and hedging in the NEM. Nevertheless, the ACCC expects NEMMCO to make it clear to market participants and other interested parties that prices are quoted on a GST-exclusive basis".
"GST-exclusive spot prices are in line with the ACCC's GST guidelines, will facilitate compliance with the New Tax System and will support the ongoing orderly conduct of the national electricity market", Mr Shogren said.
The determinations on rebidding, VoLL scaling and settlements statements are unchanged from the ACCC's earlier draft determinations.
The changes to the rebidding rules will require generators to provide reasons for any rebid. The ACCC accepted the argument of the National Electricity Code Administrator that this change will assist in the analysis of bidding behaviour and therefore enhance NECA's market monitoring.
"The ACCC remains concerned about the degree of market power generators hold in various circumstances. However, the ACCC also recognises that additional restrictions on rebidding at this time may impose significant costs on the national market", Mr Shogren said.
The ACCC also granted interim authorisation to amendments to Queensland derogations that were originally set to expire on the interconnection of Queensland and New South Wales. The amendments will extend the end dates of eight technical derogations to 31 December 2002. The amendments will allow the Queensland market to continue to operate on the existing basis but to take advantage of the earlier than anticipated commissioning of the Queensland - New South Wales interconnector.
The ACCC imposed a condition requiring NEMMCO to be the independent umpire in those circumstances where Queensland's rules differ from the national market and may have a material impact on system security in NSW and the remainder of the interconnected market.
The ACCC also issued a draft determination on Code changes to allow the Inter - Regional Planning Committee to consider technical network issues associated with the proposed Basslink interconnector between Tasmania and the mainland.
"The Code changes are minor administrative amendments that will allow the IRPC to finalise its work before Tasmania joins the national market. The ACCC is conducting a separate process for examining the competition impacts of Tasmania's entry to the national market", Mr Shogren said.
Copies of the decisions will be available on the ACCC website: http://www.accc.gov.au