The Australian Competition and Consumer Commission has released National Electricity Market Code of Conduct: Comments and Issues Arising, which comments on the draft National Electricity Market Code of Conduct in terms of its likely effects on competition in the National Electricity Market (NEM) and the terms and conditions of access to network infrastructure.
"The paper gives the NGMC the Commission's initial views on the draft Code before it is finalised for submission to the ACCC for authorisation and approval of access undertakings under the Trade Practices Act 1974," ACCC Chairman, Professor Allan Fels said today.
The Commission held public consultations on the draft NEM Code (Version 1.0), which was based on its March 1996 Issues Paper - National Electricity Market. The Commission received more than 30 written submissions from interested parties including generators, distributors/retailers, environmental groups, electricity customers and governments.
The paper addresses the key issues raised by the code, including:
- the role and independence of the National Electricity Code Administrator (NECA) and the National Electricity Market Management Company (NEMMCO)
- market design
- prudential requirements
- price cap and price floor
- transmission pricing
- distribution pricing, and
- network augmentation.
"The approach proposed in the code to network pricing and augmentation; will have important influences on the effectiveness of competition and network access in the NEM and is an area open to the most improvement in the draft Code," Professor Fels said.
"In general, the issues raised in the paper may have implications for the net public benefit balance under the Commission's authorisation process and for the interests the Commission is required to weigh in its assessment of access undertakings".