GSH Prudential Dashboard

AEMO Australian Energy Market Operator operates the Gas Supply Hub Gas Trading Exchange (GSH Gas Supply Hub. An exchange for the wholesale trading of natural gas.) market with a strong prudential framework, so all market participants can have high confidence in receiving payments without delay on the payment date. A critical element of the framework is the concept of prudential exposure. This is the amount a market participant must cover using bank guarantees and security deposits to ensure AEMO can settle all liabilities, including forward trades exposure, should the market participant’s position be closed out.

To assess that prudential obligations are satisfied, AEMO compares prudential exposures to the trading limit for each market participant at the start of each business day. If the prudential exposure exceeds the trading limit for consecutive days, then AEMO may issue a call notice to the market participant and halt its ability to trade for breaching the prudential framework under the GSH Exchange Agreement See Relevant Rules or Procedures. This acts as an incentive for each market participant to manage their prudential exposure within their trading limit.

The GSH Prudential Dashboard allows GSH market participants to make informed prudential management decisions by providing useful information about their accrued financial position with AEMO. To provide an up-to-date snapshot of prudential information, the dashboard is updated every time a new prudential run becomes available throughout each business day. Ad hoc prudential runs that update the dashboard occur if there is a reallocation submission on a weekend or during one of  Australia's national public holidays.

For more details, see Gas Supply Hub Settlements and Payments.