The National Electricity Rules (NER) under clause 3.14.6 and the Australian Energy Market Commission (AEMC) compensation guidelines that were in place in June 2022 set out a process for eligible market participants to claim compensation for any losses during an administered pricing period where the administered price cap (APC) or an administered floor price is applied. The process is run independently by the AEMC. 

Compensation claims made under NER clause 3.14.6 are assessed and determined based on the APC, administered floor price and AEMC compensation guidelines in place at the time of the relevant administered price period. 

June 2022 administered pricing event

This page includes information about the administered pricing compensation process for the administered price periods that occurred across the national electricity market between 12 and 15 June 2022.

In June 2022, the APC was $300/MWh, the administered price floor was -$300/MWh, the cumulative price threshold (CPT) was set at $1,359,100 and the market price cap (MPC) was set at $15,100/MWh. The October 2021 version of the AEMC compensation guidelines applies to the assessment and determination of compensation claims made in relation to this event. 

The compensation arrangements are designed to maintain the incentive for participants to supply services while administered pricing is effective. It does this by enabling generators and other eligible parties to claim compensation for direct costs and opportunity costs.

Notice of receipt of claims for June 2022 administered pricing periods

The AEMC has published the following notices of claims.

• Notice of receipt of claims (claims received 23 June - 1 July 2022)
• Notice of receipt of claims (claims received 17 June - 22 June 2022)

You can find more information about making an administered price cap claim.

The AEMC has published final decisions on six claims to date

The Commission has assessed a number of claims for administered pricing compensation following the market event in June 2022.  The Commission’s final decisions are available on individual claims pages by clicking the hyperlinks in the table below for claims marked as ‘Final decision published’.

Aspects of these decisions may be relevant if you provided notification of an intent to claim compensation and are yet to submit supporting information. Once received, the Commission will consider the merits of each claim on a case-by-case basis. 

For claims covering the market suspension period, the Commission notes that based on the submissions and supporting information provided by claimants to date, claimants are not eligible for administered pricing compensation after the end of the 15 June 2022 trading day. This is because while the market was suspended, the spot price was set according to AEMO’s market suspension pricing schedule and not by the APC.  In such periods, market participants may be entitled to compensation payments under another scheme that is administered by AEMO.

We recognise that there may have been confusion due to the differing compensation schemes that apply in different circumstances and are administered by two different agencies. The AEMC is responsible for administering the administered pricing compensation scheme and is unable to consider claims for compensation under AEMO’s market compensation scheme. It is the responsibility of market participants to seek compensation under the appropriate scheme relevant to the circumstances that exist at the time. 

Status of claims

Last updated: 1 February 2024

All remaining administered pricing compensation claims relating to the market event in June 2022 have been submitted to the AEMC. Many of the administered pricing compensation claims were withdrawn by claimants.

To date, the AEMC has published final decisions for six claims. The total compensation amount awarded for these claims is $18.1 million.

As of 1 February 2024, the AEMC is currently assessing two claims and is yet to formally commence assessing three claims. The total value of compensation claimed across these five claims is $47.8 million. Notwithstanding the compensation amounts awarded to these claimants may differ from the claimed amount, the AEMC is publishing the aggregate amount claimed across these five claims to assist market participants who wish to understand the potential size of future liabilities relating to administered pricing compensation determinations. The AEMC will not provide any further updates to the aggregate amount claimed as the remaining five claims are determined. This is to protect claimants’ confidential information.

More information can be found on individual claims pages by clicking the hyperlinks in the table below. Individual claims pages will be added as claims commence.  Where a claim has been finalised, the total compensation amount awarded can be found on the individual claim page.