Credit Limits Methodology
The National Electricity Rules Clause 3.3.8 requires AEMO to publish a methodology for the determination of Maximum Credit Limits for Market Participants, and to also publish a methodology for determining a Prudential Margin for Market Participants.
Version 9 of the Credit Limits Methodology is effective from 7 November 2011 onwards, and includes changes to inter-regional adjustment calculation.
For further information on this document, please contact: Ruth Guest, Metering and Settlements.
| Credit Limits Methodology v9 07 Nov 2011 | filename: 0530-0024.pdf |
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Please contact the InfoCentre if you require copies of previous versions or consultations.
Maximum Credit Limit and Prudential Margin Calculator
The Maximum Credit Limit and Prudential Margin Calculator is a useful tool available for Participants to estimate how increasing or decreasing load, generation and reallocations will affect MCL and PM. Make sure you have updated the calculator with the correct average price, volatility factor and credit period.
| Maximum Credit Limit and Prudential Margin Calculator 07 Nov 2011 | filename: 0530-0025.xls |
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NEM Regional Volatility Factor, Average Price and Review Schedule
Refer to tables below detailing the Volatility Factor (VF) and Average Prices as calculated for input to the NEM Maximum Credit Limit and Prudential Margin calculations over the previous 4 quarters.
Volatility Factor (VFR)
| Region | 2011Q1 |
2011Q2 |
2011Q3 |
2012Q1 |
| NSW1 | 3.4 |
3.7 |
3.8 |
3.7 |
| QLD1 | 2.4 |
3.4 |
3.3 |
3.1 |
| SA1 | 3.5 |
3.5 |
3.6 |
3.4 |
| TAS1 | 2.0 |
2.1 |
2.3 |
1.4 |
| VIC1 | 2.7 |
2.1 |
2.0 |
1.9 |
Average Prices (PR)
| Region | 2011Q1 |
2011Q2 |
2011Q3 |
2012Q1 |
| NSW1 | $38.51 |
$37.75 |
$36.90 |
$38.68 |
| QLD1 | $27.09 |
$30.18 |
$32.16 |
$34.65 |
| SA1 | $42.41 |
$33.52 |
$33.13 |
$37.16 |
| TAS1 | $32.71 |
$31.44 |
$25.83 |
$27.92 |
| VIC1 | $36.51 |
$31.35 |
$27.19 |
$29.04 |
Refer to the tables below detailing the dates for the next five (5) Maximum Credit Limit and Prudential Margin Reviews.
Review Schedule
| Review | Effective Date | Calculation Up To |
| 2012Q2 | MON 27-Feb-2012 | SAT 28-Jan-2012 |
| 2012Q3 | MON 01-Jul-2012 | SAT 01-Jun-2012 |
| 2012Q4 | MON 17-Sep-2012 | SAT 18-Aug-2012 |
| 2013Q1 | MON 26-Nov-2012 | SAT 27-Oct-2012 |
| 2013Q2 | MON 25-Feb-2013 | SAT 26-Jan-2013 |
For further information on these figures or dates, please contact prudentials@aemo.com.au.
Prudential Dashboard
AEMO maintains a browser-based facility called the 'Prudential Dashboard' to provide each participant with the latest prudential information. The dashboard data is updated regularly as new prudential information becomes available. It gives a picture of how the participant is 'travelling' prudentially and provides readily accessible data needed for prudential management decisions.
The benefit for retailers is that they are able to see exactly the same information that AEMO uses in its prudential assessments. The dashboard will also provide generators with useful information about their accrued financial position with AEMO.
The NEM Prudential Dashboard support Information document defines each component of the dashboard and it is recommended that the document be reviewed by any participant using the dashboard.
| Prudential Dashboard Support Information 1 Dec 2010 | filename: 0530-0018.pdf |
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Credit Support Webpage
A browser-based facility called the ‘Credit Support Webpage’ has been developed to provide a facility for NEM Participants to view and analyse their Credit Support.
The document defines each component of the Credit Support Webpage and it is recommended that the document be reviewed by any participant using the Credit Support Webpage.
| Credit Support Webpage User Manual 21 Oct 2009 | filename: 0530-0004.pdf |
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| Financial Guarantee Pro Forma and Credit Support Management Guide
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Security Deposit Arrangements
This paper deals with arrangements between AEMO and Market Participants with respect to Security Deposits and the relevant Rules clauses. The purpose is to:
- Provide a background on Security Deposit Rules clauses;
- Outline day to day procedures AEMO will use to process Security Deposits under the rules clauses;
- Discuss GST implications; and,
- Provide background information on contrasting call notice amounts with Security Deposit amounts.
For enquiries regarding this document, please contact: Chris Muffett, Metering and Settlements.
| Security Deposit Arrangements 17 Oct 2011 | filename: 0530-0023.pdf |
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