Market Commentary - June 2011

As in our previous edition, the events leading to historically high spot market prices on Saturday 26 March 2011 continued to feature prominently in the Authority’s work programme over the last couple of months. The Authority released its final decision on the matter on 15 June 2011, declaring those events constituted an undesirable trading situation (UTS). The Authority has been very mindful of the need to complete the investigation as expeditiously as possible and in a manner that properly and fully takes into account the complex and contentious issues surrounding the event (see item on page six).

A large part of this Market Commentary provides a high-level review of the Authority’s first six months of operations in regard to eight strategic goals set in November last year. Considerable progress has been made towards these goals and we are now starting to fashion a work programme for the period beyond November 2011. The longer term focus for the Authority is on achieving the outcomes presented in our Statement of Intent tabled in Parliament, which cover competition, reliability and efficiency and which we refer to as our CRE aspirations.

We are particularly keen to develop our future work programme with early input from consumers and industry participants, before the strategic decisions are made. We are also giving consideration to the real-world constraints facing all regulators, and intend publishing regulatory strategy principles to guide strategic choices for the future work programme.

Market_Commentary_issue_4_June_2011.pdf

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