The Clean Energy Council supports the inclusion of direct costs across all three compensation frameworks and amending the national electricity rules (NER) to include a single list of claimable direct costs. The inclusion of opportunity costs is a significant improvement from the previous form of the compensation frameworks.
Consideration of each technologies’ opportunity costs will incentivise participation and claimants will be accurately assessed and compensated. We consider that the recommendations will improve market participants confidence.
While most of what is being proposed represents a marked improvement, the Clean Energy Council considers the review should give further consideration as to how generators can be effectively compensated and incentivised to respond to market signals in all situations. This is in light of the market notice for direction on minimum system load.