Global settlement and market reconciliation – AEMC consultation paper

The AEMC is seeking feedback on a rule change request from AEMO that proposes a new ‘global’ settlement framework for energy retailers. Currently a ‘local retailer is appointed to a distribution area and bears responsibility for all ‘unaccounted for energy’ (UFE) in their area.

The aim of the proposed framework is to treat all retailers equally by allocating a share of UFE to all retailers in a distribution area. Under global settlement, AEMO would also be able to reconcile the market. AEMO proposes that the IT system capability for global settlement should be developed at the same time as the design and build activities required for the introduction of five minute settlement in 2021.

AGL supports the replacement of the current settlement approach with a global settlement framework.

View the AGL Stakeholder feedback here.