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Wholesale electricity market performance monitoring: statement of approach - March 2018

Electricity Electricity prices Competition Electricity demand Australia
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The National Electricity Law (NEL) requires the AER to monitor the wholesale market and report on its performance at least every two years. We are required to identify and analyse whether:

there is ‘effective competition’ within the relevant wholesale market, as defined in the NEL

there are features of the market that may be detrimental to effective competition within the market

there are features of the market that may be impacting detrimentally on the efficient functioning of the market and the achievement of the national electricity objective.

This monitoring and reporting role supports the efficient operation of the wholesale electricity market as it allows early detection of issues affecting market performance.

We have other performance reporting obligations across our wholesale, retail and network areas that pre-date these new functions. In wholesale these have generally focussed on short term outcomes, compliance issues and individual price events. The new wholesale monitoring and reporting functions will take a longer term view and focus on competition issues.

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