Settlements

For the IESS Integrating Energy Storage Systems project, the major change to Settlements See Relevant Rules or Procedures is in how energy values are used in settlement calculations. Currently, based on the participant category, the SETCP database table contains the customer energy Energy Rules Terms data, SETGEN database table contains the generator energy data, and SETSMALLGENDATA database table for Small Generator Aggregators.

The Data Model tables under Settlements and Billing packages will not be deprecated. AEMO retains the legacy tables for a period of time until the Revision dates no longer span the pre-IESS period.

Under IESS, the SETCP and SETGEN tables are removed and replaced by Adjusted Consumed Energy The unit must be a generator for the service type: ‘energy’. Loads cannot bid for mandatory restrictions capacity. (ACE Adjusted Consumed Energy) and Adjusted Sent Out Energy (ASOE Adjusted Sent Out Energy). ACE and ASOE are participant category agnostic data streams. The settlement processes is now based on energy direction, irrespective of participant category and on gross energy values, instead of netted imports and exports. All market participant categories listed as a FRMP Financially Responsible Market Participant, usually a retailer, Generator, Market Customer or a Market Small Generator Aggregator, identified in respect of a connection point. Responsible for dealings with AEMO in relation to a specific load. (Market Customer See Relevant Rules or Procedures, Market Generator See Relevant Rules or Procedures, SGAs, MNSP Market Network Service Provider. A network service provider (NSP) that earns revenue from the spot market., Interconnector See Relevant Rules or Procedures) are affected by the IESS Settlement changes.

Removing netting from settlements ensures energy is settled based on what it is, consumption or generation, rather than who it is allocated to. Under IESS, participants pay for the consumption portion of their energy and are paid for the generation portion. While this ultimately does not impact the resulting energy settlement amount (there is no difference between paying for consumption and being paid for generation compared to paying for the net of both) it impacts the dollar amount on the bills for other services such as non-energy cost recovery.

Energy settlement

In the Wholesale energy market, Market Generators See Relevant Rules or Procedures are paid for energy they produce (SETGEN), and Market Customers pay for energy they consume (SETCP). In most calculations, the energy is a single net value, that is, the generation and consumption are offset against each other. In some instances, this allows for non-positive consumption or generation, depending on the connection point classification.

Energy settlements

Under IESS, Settlements moves away from the current category-based approach towards an energy direction approach. Generation Energy Rules Terms becomes sent out energy and load becomes consumed energy, regardless of the type of connection point.

The Energy settlement stream changes for the IESS project are:

  • All calculations for energy settlements now include IRP Integrated Resource Provider. Any person who owns, controls or operates an integrated resource system connected to a transmission or distribution network must register as an Integrated Resource Provider details.
  • The data inputs for the energy settlement calculations change from SETCP, SETGEN, and SETSMALLGENDATA (import and export net meter data tied to participant category) to ACE and ASOE (gross imports and exports).
  • Adjusted Gross Energy (AGE) is now the sum of ACE and ASOE.
  • Export MWh is assigned to ACE and Import MWh is assigned to ASOE.
  • Settlement calculations are performed on gross ACE and ASOE instead of the net values.
  • Under IESS, UFE is calculated for the distribution connected market connection points and allocated to any connection points that consume energy in the trading interval Energy Rules Terms, based on gross Adjusted Consumed Energy (ACE). The generation flooring is no longer required as only ACE is considered, not ASOE (something automatically inherited). The types of NMIs included in UFEA is now be extended to distribution-connected generators to ensure Market Generators pay for any load recorded at their sites, such as auxiliary load.

Wholesale demand response (WDR)

No changes under IESS

Standalone power systems (SAPS)

No changes under IESS

Non-energy settlement

There are four types of non-energy settlement covered in this section:

Market ancillary services:

Non-market ancillary services:

All settlements are made up of payments and recoveries. In non-energy settlement, payment and recovery processes and calculations vary between each service.

There is no change to the payment processes and calculations under the IESS project.

Under IESS, the Recovery of all services is allocated to Cost Recovery Market Participants (CRMPs) based on a proportion of their ASOE or ACE. CRMP Cost Recovery Market Participants is not a new participant category but includes the following group of participant categories:

  • Market Generators
  • Integrated Resource Providers
  • Market Customers

Non-energy cost recovery (NECR Non-energy Cost Recovery) is a major change under IESS Settlements. In each trading interval, in relation to each Cost Recovery Market Participant See Relevant Rules or Procedures, for each region Energy Rules Terms, an ancillary services transaction occurs. This results in a trading amount for that Cost Recovery Market Participant.

Market ancillary services (MAS)

For Regulatory and Contingency FCAS, the payment process and calculations do not change.

Recovery processes for FCAS differs between Contingency and Regulation FCAS.

Contingency FCAS recovery

Under IESS, the Contingency raise payments are recovered from all CRMPs based on ASOE and the Contingency lower payments are recovered from all CRMPs based on ACE.

Regulatory FCAS recovery

Regulation FCAS costs are recovered from Market Participants on a causer pays basis. Causer pays uses a methodology to measure the response (using SCADA Supervisory Control and Data Acquisition. A system that gathers real-time data from remote terminal units and other communication sources in the field and enables operators to control field devices from their consoles. data) of generators and loads to frequency deviations to determine a series of causer pays factors (Market Participant Factor – MPF Market Participant Factor). MPFs are a percentage of the whole cost to be recovered.

AEMO Australian Energy Market Operator assigns lower causer pays factor to participants who assist in the correction of frequency at the Wholesale Connection Point Connection points located at the transmission node representing bulk supply feeders to a distribution network, interconnectors, and generation points. (WCP Wholesale Connection Point), while those causing frequency deviations are assigned a high causer pays factor (at the WCP).

Under IESS, Regulation MPF recovery is based on CRMP participants’ share of assigned MPF and the Residual Regulation recovery is based on CRMP’s share of ACE.

Non-market ancillary services (NMAS)

For non-market ancillary services (NMAS Non-Market Ancillary Services. Services to support power system security in the NEM that are acquired by AEMO outside the market, under bilateral contracts. AEMO can acquire SRAS and NSCAS in this way.) services, the payment processes and calculations do not change.

System Restart Ancillary Service (SRAS)

Under IESS, two trading amounts for SRAS recovery are updated. The cost recovery from CRMPs and the cost recovery of SRAS is based on 50% ASOE + 50% ACE.

Network Support and Control Ancillary Service (NSCAS)

Under IESS, two trading amounts for NSCAS recovery are updated. The cost recovery from CRMPs and the cost recovery of NSCAS and tests to be based on ACE.

Other settlement services

Market fees

Under IESS, Market fees will continue to be calculated for all participants including IRP using the existing process, in line with how participants are currently being charged as market customer/generator.

Intra-regional residues

Settlements residue arises in the NEM because the amount paid by market participants to AEMO for spot market transactions usually differ from the amount paid by AEMO to other market participants for spot market transactions.

Intra-regional settlements residue:

  • Settlements residue relating only to settlement transactions within a region.
  • Not listed for auctions, but distributed to, or recovered from, the appropriate TNSPs.

Under IESS, intra-regional See Relevant Rules or Procedures residue calculations use ACE and ASOE data streams.

Inter-regional settlements residue auction

Inter-regional See Relevant Rules or Procedures settlements residue auction:

  • Inter-regional settlements residue relating to inter-regional transmission over regulated interconnectors and settlement transactions between regions.
  • Calculated based on regional reference prices and inter-regional flows.
  • Listed for auctions conducted by AEMO.
  • Available for purchase at auction by certain participants in the NEM.

There is no change to inter-regional settlements residue auction under IESS except, the process now extend to allow inter-regional SRAs for IRPs.

Reallocations

A reallocation is a Rules The National Gas or Electricity rules.-supported financial arrangement under which two Market Participants request AEMO to make matching debits and credits to the settlement position of those Market Participants.

There is no change to reallocations under IESS except, the process now extend to allow reallocations for IRPs.

EMMS Data Model

The new version of the EMMS Energy Market Management System (formerly MMS); software, hardware, network and related processes. Data Model The definition of the interface to participants of data published by AEMO for gas or electricity. A database conforming to the Data Model can contain a local copy of all current participant-specific data recorded in the main database. The Data Model includes database tables, indexes, and primary keys. includes new and updated tables to capture all the changes listed in the above sections. The EMMS Technical Specification - Data Model v5.3 – April 2024 captures list of table changes.