Ancillary service rates
Clause 8.67 of the Code requires the system operator to set, annually in advance, the peak rate and the penalty rate for each zone used to allocate voltage support costs.
The methodology used by the system operator for setting those rates is to determine, for each zone, the unique pair of rates that satisfy the following requirements:
- The peak and penalty revenue derived from kvar data for each distributor kvar reference node (grouped GXPs) that will recover the estimated cost of the voltage support contracts, assuming that kvars at each distributor kvar reference node are as in the previous calendar year.
- The penalty rate is equal to or greater than the per unit cost of new high-voltage kvar support equipment.
- Rates are rounded to the nearest cent per kvar.
For the twelve months commencing 1 March 2013, the rates determined according to this methodology are:
1 March 2013 to 30 November 2013 - Peak rate: 118 cents/kvar
1 December 2013 to 28 February 2014 – Peak rate: 0 (zero) cents/kvar
1 March 2013 to 30 November 2013 - Penalty rate: 162 cents/kvar
1 December 2013 to 28 February 2014 – Penalty rate: 0 (zero) cents/kvar
If you're interested in historical ancillary service rates please contact Market Operations.
Nominated peak demand
Clause 8.67 of the Code requires distributors to nominate annually in advance a peak demand in kvar at each distributor kvar reference node in each zone. For avoidance of doubt the nomination is for offtake only, it should not net off any injection.
For the twelve months commencing 1 March 2013 nominations have been requested for zone 1.
For information on making submissions of the nominated peak demand, contact the system operator.