What is a reallocation?

A reallocation is an agreement that is approved between AEMO Australian Energy Market Operator and two parties that enables the exchange of a settlement transaction between the two parties. One party is designated the credit participant and receives credit from the reallocation, whilst the other party is the debit participant. The reallocation process commences with the submission and authorisation of a reallocation request by authorised market participants in the GSH Gas Supply Hub. An exchange for the wholesale trading of natural gas. Reallocations Reallocation Request Service. See Relevant Rules or Procedures.

What is a reallocation transaction

A reallocation transaction (reallocation) is an authorised request in the GSH Reallocations web application. The request generates matching debit and credit transactions of equal value that are included in the participants’ settlement statements.

What are roles and parties

Depending on their roles, the parties to a reallocation agreement are called the:

• Submitting participant who initiates the request in the GSH Reallocations web application.
• Counterparty The authoriser of the Reallocation who authorises the request.
• Debit participant The market participant debited with the reallocation amount for a reallocation, as part of settlement for the relevant billing period.: participant receiving a debit settlement transaction on the settlement statement).
• Credit participant The market participant credited with the reallocation amount for a reallocation, as part of settlement for the relevant billing period.: participant receiving a credit.

What are agreement types

A reallocation can have two different agreement types—A fixed dollar amount ($) or a fixed quantity amount (GJ Gigajoule: a unit of measure of energy equal to 10 to the power 9 joules.).