We have decided to develop the details of a ’look-ahead’ dispatch-based price (option B from the information paper published in April 2016). We intend to develop this option in the 2016/17 financial year in sufficient detail to publish a proposal to amend the Electricity Industry Participation Code 2010 (Code).

After considering submissions on the information paper we remain of the view that settlement on real-time prices (RTPs) has the potential to make wholesale market spot prices (spot prices) more actionable and more resource efficient. Making spot prices more actionable and resource efficient would promote all three limbs of our statutory objective because it would result in:

  1. greater competition between generators and consumers, especially when spot prices are high
  2. a more efficient level of reliability in the power system as the system operator could come to rely equally well on demand bids or generation offers 
  3. a greater level of operational efficiency in the wholesale market as calculating spot prices would no longer need any manual intervention.