Review of urgent rule amendments relating to instantaneous reserve dispatch improvements
About this Consultation
The Electricity Commission invites submissions on the consultation paper 'Review of urgent rule amendments relating to instantaneous reserve dispatch improvements'.
The consultation paper reviews and seeks submissions on the amendments to parts A, C and G of the Electricity Governance Rules 2003 (Rules) made under urgency on 18 February 2010. The rule amendments relate to the scheduling and dispatch of instantaneous reserve (IR). More specifically, the rule amendments:
- introduce constrained on payments for IR by amending part A and section V of part G of the Rules; and
- allow system scheduling and dispatch to prioritise the scheduling of energy ahead of the scheduling of IR to manage contingent events. That is achieved by:
- the introduction in schedule G2 of part G of the Rules of a distinction between model variables (also called Constraint Violation Penalties or CVPs) relating to IR for managing contingent events and similar model variables relating to IR for managing extended contingent events; and
- a change to the reserve management objective in schedule C6 of part C of the Rules.
These amendments were made to improve incentives for offering capacity, and particularly IR, during tight market conditions, by ensuring that providers of IR are adequately compensated. This will improve the dispatch of IR where there is insufficient IR. The rule amendments come into force on 1 May 2010 although exemptions have been applied for by both the System Operator and the Clearing Manager to allow time to implement software changes.
The amendments were made urgently under section 172E(3) of the Electricity Act 1992 (Act), which allows rule amendments to be made urgently if the Commission considers it to be necessary or desirable in the public interest. The Commission is now required to consult on and review those rule amendments, and, having considered submissions received, make a recommendation to the Minister on whether or not the rule amendments should be revoked, replaced, or amended.
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