Market Efficiency - Pricing Framework
Review of Price Cap, Price Floor and Shortage Pricing
In order to meet the government’s direction, while also ensuring stability and certainty in the energy-only market structure, the AESO will evaluate the ability of the current pricing framework in the energy market to maintain resource adequacy and economic efficiency in both the short and long term, and explore options to address deficiencies or increase efficiency in the current energy-only market pricing framework. Administrative price mechanisms, such as the current price cap, offer cap and price floor, must be set at levels to allow for efficient market outcomes while also protecting consumers from cost risk.
Throughout the Pricing Framework engagement process, the AESO will be seeking stakeholder input and feedback on:
- The current energy-only pricing framework;
- The AESO’s methodology and analysis to evaluate the pricing framework; and
- Options to evolve or improve the ability of the pricing framework to maintain resource adequacy and economic efficiency.
The AESO will take stakeholder feedback into consideration when submitting the requested recommendation to the Minister of Energy in Q3 2020.
The AESO anticipates hosting 3-4 engagement sessions from Feb. to May 2020. The details for the first session are as follows:
Date: Feb. 12, 2020
Time: 9:00 a.m. to 12:00 p.m.
Venue: The Metropolitan Conference Centre (Royal Theatre Room)
To RSVP for the session, please email email@example.com with the names and contact information of the representatives who will attend by Feb. 7, 2020. To join the session via webinar, please click here to register.
An agenda will be provided to registered parties closer to the session.
To view the 2020 Plan for Market-Related Initiatives, click here.
- Session#1 Presentation [Posted Feb. 11, 2020]
- Session#1 Stakeholder comment matrix [Posted Feb. 12, 2020]
- Session#1 Webinar Recording [Posted Feb. 13, 2020]