The Australian Competition and Consumer Commission has issued its final determination for authorisation of changes to the National Electricity Code.
The code changes deal with the three separate issues of: market operations for the Y2K period; the regulatory test for new network investments; and deferring compensation payments for system security directions.
No requests for a pre-decision conference were received from interested parties regarding the draft determination and the code changes were authorised relatively unchanged.
The Y2K code changes will set a ceiling price of $300/MWh and a floor price of $0/MWh for the electricity spot market. The ceiling and floor prices are to be in place for three days, beginning on 31 December 1999, but the National Electricity Code Administrator (NECA) can extend the period for a further seven days.
"In response to the concerns of electricity market participants, the ACCC has imposed a condition of authorisation which requires that NECA publish the criteria it will use to decide whether to extend the price cap and floor beyond the three day period", Acting ACCC Chairman, Mr Allan Asher, said today.
The code changes will also change the criteria used to assess the merits of investments in the regulated electricity networks. The code change will replace the existing customer benefits test with a regulatory test to be determined by the ACCC.
The ACCCs revised draft regulatory test for new interconnectors and network augmentations was released with the initial draft determination. A number of submissions were received regarding the regulatory test. It is expected that the test will be promulgated once the code changes have been implemented.
