5 Obligations for NCESS Contract Holders
5.1. [Blank]
5.2. [Blank]
Explanatory Note Any existing or new facility or equipment whether belonging to registered or intending market participants is able to participate in an NCESS procurement. Existing market participants will only be compensated for costs not already covered through participation in the existing mechanisms of the WEM. For example, where a facility has already been granted or will receive capacity credits, the facility will only be compensated for any incremental fixed costs incurred in providing NCESS. Where a facility is granted an NCESS contract within a capacity year and the allocation of certified reserve capacity has already taken place, the facility will be required to apply for certified reserve capacity in the Reserve Capacity Cycle following immediately after the year in which the NCESS contract was granted. New participants may submit both their fixed and operating costs and will be required to declare in their submissions whether or not the facility has applied for or has been granted capacity credits in respect of the capacity that will provide the NCESS. Only Facility Technology Types that would ordinarily be capable of receiving certified reserve capacity under chapter-4 are required to apply in the Reserve Capacity Cycle. Where a facility or equipment would not ordinarily be eligible for certified reserve capacity under Chapter- 4 (for e.g. a static var compensator), the relevant market participant will not be required to participate in the RCM. Instead, it will be required to declare in its submission why it is ineligible to receive capacity. |
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5.2A Registration and Certification
5.2A.1. [Blank]
Explanatory Note Clauses 5.2A.2 and 5.2A.3 require a Market Participant to apply for Certified Reserve Capacity if it has entered into a Network Control Service Contract or Dispatch Support Service Contract prior to the close of the Certified Reserve Capacity application window. Clause 4.8A.3 requires a Market Participant to apply for an indicative Facility Class prior to submitting an application for Certified Reserve Capacity. If a Market Participant enters into a contract a short period (e.g. a day or even a week) before the certification application window closes, it would have a rule obligation to apply for Certified Reserve Capacity. However, this would not provide AEMO with sufficient time to assign the Facility an indicative Facility Class and create a Certified Reserve Capacity application in its systems to enable the Market Participant to submit an application before the certification window closes. This would force either AEMO or the Market Participant into non-compliance. To resolve this issue, clause 5.2A.3 is amended to shift the relevant deadline to the opening of the certification application window (as specified under clause 4.1.7). |
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5.2A.2 Where a Market Participant enters into an NCESS Contract for a
Facility, and the Facility Technology Type for the Facility would ordinarily be capable of being assigned Certified Reserve Capacity, then the Market Participant must apply to AEMO for Certified Reserve Capacity, must meet the requirements of clause 4.8A.3(c) where applicable, and use best endeavours to meet the requirements of clause 4.10.1, in respect of the Facility, in respect of each Reserve Capacity Cycle that the Facility would be eligible to participate in over the period of the NCESS Contract.
Explanatory Note The amendment to clause 5.2A.3 to shift the deadline specified in the clause to the opening of the certification application window will need to be remade following the replacement of that clause by the Wholesale Electricity Market Amendment (Tranche 5 Amendments) Rules 2021 (Schedule I, paragraph 37.2). See also the Explanatory Note for clauses 5.2A.2 and 5.2A3 for further details about the change. |
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5.2A.3. Clause 5.2A.2 does not require a Market Participant to apply for
Certified Reserve Capacity for a Facility for a Reserve Capacity Cycle where the Market Participant has entered into an NCESS Contract in respect of the Facility after the date and time specified under clause 4.1.7 for that relevant Reserve Capacity Cycle.
5.3. Variations to NCESS Contract
5.3.1. Where a Market Participant, that has entered into an NCESS
Contract in respect of a Facility, is assigned Capacity Credits for the Facility in a Reserve Capacity Cycle that coincides with the period of the NCESS Contract, then:
\(a\) where the NCESS Contract was entered into with AEMO, AEMO must vary the payment terms of the NCESS Contract such that the total payment under the NCESS Contract is reduced by the value of the total amount of the expected Capacity Credit payments to be paid to the relevant Market Participant for that Reserve Capacity Cycle; or
\(b\) where the NCESS Contract was entered into with a Network Operator, AEMO must provide the value of the total amount of expected Capacity Credit payments to the Network Operator, and the Network Operator must vary the payment terms of the NCESS Contract such that the total payment under the NCESS Contract is reduced by the value of the total amount of the expected Capacity Credit payments to be paid to the relevant Market Participant for that Reserve Capacity Cycle.
5.3.2. Where the NCESS Contract payment terms are varied in accordance
with clause 5.3.1(a), AEMO must apply the revised payment terms in the immediate next Settlement Statement.
5.3A Information required from the Network Operator
5.3A.1. When a Network Operator has entered into an NCESS Contract with
a Market Participant, the Network Operator must as soon as practicable and not less than 20 Business Days prior to the NCESS Contract taking effect, provide AEMO with:
\(a\) the identity of the Market Participant or the service provider that intends to become registered as a Rule Participant in the Market Participant class;
\(b\) the identity of the facility or equipment providing the NCESS;
\(c\) a unique identifier for the NCESS Contract;
\(d\) the period over which the NCESS is to be provided by the NCESS Contract;
\(e\) where applicable, the arrangements for scheduling and dispatch of the Facility or equipment to enable or dispatch the NCESS; and
\(f\) unless AEMO has already been provided with a copy of the final NCESS Contract pursuant to clause 3.11B.13, a copy of the signed NCESS Contract.
5.3A.2 When any change occurs to the details of an NCESS listed in
clause 5.3A.1 the Network Operator must inform AEMO as soon as practicable.
5.4. [Blank]
5.5. [Blank]
5.6. [Blank]
5.7. NCESS Dispatch
5.7.1. [Blank]
5.7.2. AEMO may call upon the relevant facility or equipment to provide
the NCESS under a NCESS Contract in accordance with the terms of the contract, or as advised to it by the Network Operator in accordance with clause 5.3A.1, whether or not AEMO is a counterparty to the NCESS Contract.
5.7.3. Where applicable, AEMO must formulate Constraint Equations in
accordance with the WEM Procedure referred to in clause 2.27A.10(c) to reflect the terms of the NCESS Contract for use in the Dispatch Algorithm.
5.7.4. Where the terms of an NCESS Contract cannot be expressed as a
Constraint Equation, AEMO must record the following details of any instruction to the Facility or equipment in respect of the provisions of the NCESS:
\(a\) the date, time and duration of the instruction;
\(b\) the nature of the instruction;
\(c\) the type of NCESS instructed to be provided;
\(d\) any required quantity of the NCESS to be provided; and
\(e\) any specific equipment configuration required to be applied.
Settlement Data
5.8. [Blank]
5.9. Settlement Data
5.9.1. AEMO must provide the following information to the settlement
system for each NCESS Contract for each Dispatch Interval in a Trading Week:
\(a\) the Market Participant that has entered into the NCESS Contract;
\(b\) the set of Registered Facilities providing services under the NCESS Contract whose EOI Quantity is higher than it otherwise would have been as a result of a binding Constraint Equation applied under clause 7.2.4(iA) relating to the NCESS Contract; and
\(c\) the payment to be made by AEMO for services provided under the NCESS Contract.
5.9.2. AEMO must provide Network Operators with details of any
quantities dispatched or otherwise instructed by AEMO to be provided under their NCESS Contracts in a Trading Week by 5:00 PM on the Invoicing Date for Settlement Statements for that Trading Week.
5.9.3. The information provided by AEMO to a Network Operator under
clause 5.9.2 must include, for each relevant NCESS Contract, Facility and Dispatch Interval:
\(a\) the unique identifier of the NCESS Contract;
\(b\) the NCESS dispatched or directed to be provided (which may be energy or another service);
\(c\) insofar as the terms of the NCESS Contract are expressed in a Constraint Equation under clause 5.7.3:
i. the information recorded by AEMO for each Dispatch Instruction under clause 7.6.8;
ii. the unique identifier for each relevant Constraint Equation that bound in the Dispatch Interval;
\(d\) insofar as the terms of the NCESS Contract cannot be expressed in a Constraint Equation, the information recorded by AEMO under clause
5.7.4; and
\(e\) any other information reasonably required for the Network Operator to determine the quantity of service provided by the Facility under the NCESS Contract.
Explanatory Note Chapter 6 is to be renamed ‘The Short Term Energy Market’ and will be limited to matters relating only to the Short Term Energy Market (STEM). The STEM is a financially binding day-ahead market. STEM provides a centrally coordinated opportunity for Market Participants to trade around their bilateral positions, supplementing and complementing the off-market bilateral contracts regime. It allows for financial trading against contract positions, rather than centralised scheduling and commitment, though it does provide a firm financial basis for commitment of long-start-time Registered Facilities. The changes focus on four main aspects:
As a result of Chapter 6 being limited to matters relating only to the STEM, further amendments are as follows:
Various clauses in Chapter 6 are also amended to reflect the Amending Rules contained in the Rule Change Panel's Final Report for Rule Change Proposal RC_2014_03 (Administrative Improvements to the Outage Process). However, as this companion version of the WEM Rules only shows the Tranches 2 and 3 Amendments as those amending rules (made by the Minister at the date this companion version was prepared) will be commenced last, please refer to the Final Report for Rule Change Proposal RC_2014_03 (Administrative Improvements to the Outage Process) to see the changes that will commence on 29 June 2021 and apply until the relevant clauses in the Tranches 2 and 3 Amendments commence. |
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