Improving prudential security arrangements

Upcoming Open Closed Decision

View submissions Submissions closed 28 November 2025

Consultation

This consultation sought feedback on the issues and options for improving prudential security requirements for small retailers.

Prudential requirements are financial obligations on purchasers of electricity on the wholesale spot market. They require funds to be paid to the clearing manager in advance, to ensure generators can always be paid for the electricity they supply. This is important because electricity is consumed before it can be invoiced and paid for, and because generators are legally required to sell it through the wholesale market.

We also sought feedback on an option to enable ASX hedges to be taken into account in the calculation of prudential requirements.

Consideration of all submissions will help inform the next stage of this work, including any further consultation on potential Code amendments, which we expect to publish in March 2026.

Consultation paper