UTS 1 May 2006

UTS claim

On 1 May 2006, we received a claim from Genesis Energy that the circumstances in a trading period on 28 April 2006 and subsequent trading periods constituted a UTS.

The claim alleged there may have been an error in the scheduling, pricing and dispatch model used for calculating the final prices on 28 April, meaning trades may have been settled improperly.

Our investigation

As we investigated this claim, we had to consider whether a rule breach by the system operator could also constitute UTS.

Genesis Energy lodged a claim with us, alleging there was an error in the inputs for final prices on 28 April 2006.

Genesis Energy also stated that it considered that the error may have had an effect on pricing schedules, final prices and provisional prices in other trading periods on subsequent days.

During our investigation, we worked with the pricing manager, clearing manager and system operator.

The system operator advised us that a scheduling, pricing, and dispatch (SPD) modelling error had occurred that affected final prices on 28 April 2006. This error was corrected in subsequent trading periods.

The system operator also notified us that it breached the Electricity Governance Rules 2003 by failing to correctly incorporate grid owner information into the dispatch schedule.

Our decision

We found that a UTS did not occur in this case. While there was a rule breach, we found that resolving this would be considered under the normal procedure for breaches.

Our analysis and conclusions are detailed in the following final decision paper.