On 28 December 2016, the Economic Regulation Authority (ERA) published an issues paper, inviting submissions on the Australian Energy Market Operator’s (AEMO) proposed values for the Margin Peak and Margin Off-Peak values for Ancillary Services in 2016/17.
The values are used in the calculation of Synergy’s market settlement payment and have increased as follows:
- Margin Peak – increase from 24% in 2016/17 to 36% in 2017/18; and
- Margin Off-Peak – increase from 36% in 2016/17 to 64% in 2017/18.
The ERA has asked for submissions to be received by 6 February 2017.
The calculated margin values are used by the market operator to calculate the opportunity cost for a generator providing ancillary services.