We have decided to amend the Code to ensure that dispatch-capable load stations are dispatched efficiently during tight market conditions. Clause 13.13(1) of the Code has been amended to require that the price associated with a nominated dispatch bid band must be either:

  1. less than or equal to $15,000/MWh; or 
  2. equal to $600,000/MWh or a similarly high value determined by the system operator to ensure the nominated dispatch bid band is scheduled on.

The amendment will promote the efficiency limb of our statutory objective by ensuring that during tight market conditions, lower-cost resources will be deployed before higher-cost resources. This means that a particular level of reliability (eg, a particular level of mandatory load curtailment) can be delivered more cheaply. This will result in slightly lower prices in the long run than would be the case without the Code amendment.

We have published a paper outlining the reasons for this decision and a summary of the submissions received. We will publish the Gazette notice shortly and the amendment will come into force on 3 November 2016.

Consultation and submissions