Bidding in good faith rule change: Practical steps to minimise the risk of an AER investigation

Competition and Market Regulation Update

By:

The change to the rebidding rule published by the Australian Energy Market Commission (AEMC) in December will come into effect on 1 July 2016. As such, participants have a relatively short period in which to determine, implement and test the necessary changes to their compliance and trading systems to comply with the new provisions.

View some of the practical steps that generators can take to minimise the risk of an Australian Energy Regulator (AER) investigation/litigation 

In many instances, those steps should be guided by consideration of legal interpretation issues arising from the new provisions. For example, in determining what information should be contemporaneously recorded, we recommend having regard to the possible interpretations of clause 3.8.22A(d) and whether the time at which the trader decided to make a new bid (in addition to the time that the trader became aware of one or more of the events creating the need for that rebid).