Strengthening price discovery in the forward electricity markets

This consultation sought feedback on proposals to amend the Electricity Industry Participation Code to require mandatory market making of the new standardised super-peak contract, extend longer dated futures to five years and reduce total baseload offer volumes.

These complementary measures are intended to increase transparency of forward prices and improve confidence in the contracts market.

Stronger price signals will better support risk management and enable entry and investment for a highly renewable electricity system which in turn will put downward pressure on prices for consumers.

The Authority consulted on proposals to strengthen trading of the super-peak product introduced in January 2025, which included continuing with voluntary trading with a conditional trigger for regulation. After considering submissions and further analysis the Authority has changed its position and believes requiring mandatory market making is necessary.

The proposals are to:

• introduce market making requirements for the standardised super-peak contract
• extend longer dated futures from three to five years
• reduce total baseload offer volumes from 12MW to 10MW.

Subject to feedback, we aim to have the amended Code and market making of the super-peak product in place by mid-2026, and the new ASX contracts trading by early 2027.

We plan to facilitate an industry-led selection process to identify an over-the-counter platform that meets our expected standards.

The process aims to ensure the selected platform supports both mandatory and voluntary participation. We intend to commence this process late in 2025, with the provider expected to be selected by mid-2026. We will provide more details closer to the time.

We thank everyone who kindly provided feedback.

We received questions from some stakeholders about this consultation.

Read our responses