The short-term trading market (STTM) uses bids, offers, and forecasts to determine a timetable for deliveries from pipeline transmission users and the hubs. The market will set daily market prices and will settle each hub based on the delivery schedules.
AEMO Managing Director and Chief Executive Officer Matt Zema said that it will introduce transparency of terms, prices and quantities.
“It is timely that the market is being introduced, at a time when new gas sources are entering the market, supporting the increased efficiency which the market offers,”? Mr Zema said.
The launch of the spot market comes after an initial delay due to the failure of the STTM to meet AEMO readiness criteria. The original 4 June start date was pushed back following AEMO’s assertion that the market’s failure to create settlement statements, receipts of pipeline allocation data, and trading participation readiness, posed significant risks to the system.
Following consultation with the industry, including the Gas Market Leaders Group, AEMO re-affirmed readiness criteria and confirmed the new start date for 1 September 2010.