Wholesale Contract Regulatory Instrument pricing investigations

​Release of the Regulator's approach to updating the inputs in Schedule 1 of the Wholesale Contract Regulatory Instrument.

On 31 August 2017, the Regulator released its  Approach to updating the inputs in Schedule 1 of the Wholesale Contract Regulatory Instrument. The updated Schedule 1 values apply from 5 September 2017.

Consultation Paper:

Schedule 1 of the Wholesale Contract Regulatory Instrument contains a number of inputs set by the Regulator and which are used in calculating the price of, and volume of electricity in, regulated contracts offered by Hydro Tasmania. During the Wholesale Contract Regulatory Instrument pricing investigation the Regulator decided to review the inputs and consult on the proposed approach to updating the input values.

On 24 July 2017, the Regulator published its Schedule 1 update - consultation paper which contains the Regulator's proposed updated values for the inputs and the proposed method to update the values in the future. The Regulator sought submissions from interested parties with consultation closing on 14 August 2017. A submission was received from:

  Hydro Schedule 1 Inputs August 2017   (229Kb)

2017 Wholesale Contract Regulatory Instrument Pricing Investigation

Release of the Wholesale Contract Regulatory Instrument and Final Investigation Report

On 23 March 2017, the Regulator finalised its review and published the Wholesale Contract Regulatory Instrument, which took effect on 24 March 2017. The Regulator also released its Final Investigation Report in relation to its Wholesale Contract Regulatory Instrument Pricing Investigation.

The Wholesale Contract Regulatory Instrument is in effect for the period 24 March 2017 to 30 June 2024.

Draft Report

Following the completion of the Regulator's pricing investigation in December 2016, an inconsistency, originating from the commencement of the Instrument made on 6 November 2013, was identified between the Instrument and the wholesale pricing model which gives effect to the approved pricing methodology set out in the Instrument.

To correct this inconsistency the Regulator decided to conduct another pricing investigation to revoke the existing Instrument and make a new Instrument.

On 2 March 2017, the Regulator announced its intention to conduct an investigation and released a Consultation Paper inviting interested parties to make a submission. Consultation closed on 16 March 2017.

Submissions were received from:

  Aurora Energy Wholesale 2017   (216Kb)

  Hydro Wholesale 2017   (210Kb)


2016 Wholesale Contract Regulatory Instrument Pricing Investigation

Final Versions of the Wholesale Contract Regulatory Instrument, Electricity Wholesale Contract Guideline and Statement of Regulatory Intent

On 21 December 2016, the Regulator finalised its review and published final versions of the  Wholesale Contract Regulatory Instrument, Electricity Wholesale Contract Guideline, and  Statement of Regulatory Intent. The Regulator also released its Final Investigation Report in relation to its Investigation.

The Wholesale Contract Regulatory Instrument was in effect for the period 1 January 2017 to 24 March 2017 when it was revoked following the 2017 Investigation.

Draft versions of the Wholesale Contract Regulatory Instrument, Draft Electricity Wholesale Contract Guideline and Statement of Regulatory Intent

On 21 October 2016, the Regulator released, for public consultation, drafts of each of the Wholesale Contract Regulatory InstrumentElectricity Wholesale Contract Guideline and Statement of Regulatory Intent. The Regulator also prepared a Consultation Paper to assist interested parties in making submissions. Submissions closed on 11 November 2016.

Submissions were received from:
  Aurora Energy Wholesale Draft 2017   (831Kb)

  Hydro Tasmania Wholesale Draft 2017   (323Kb)

Draft Report

On 19 August 2016, the Regulator released its Draft Report on the Review of the Wholesale Contract Regulatory Instrument.

The Regulator invited public submissions on the Draft Report and submissions closed on 23 September 2016.

Submissions were received from:

  Aurora Energy Wholesale Draft2016   (1Mb)

  Hydro Tasmania Wholesale Draft 2016   (493Kb)

The submissions were considered before drafts of each of the Wholesale Contract Regulatory Instrument, Wholesale Contract Guideline and Statement of Regulatory Intent were released for public consultation on 21 October 2016.

Pricing Investigation

The Wholesale Contract Regulatory Instrument was intended to be in effect for the period 1 January 2014 to 31 December 2018.

Under Regulation 21 of the Electricity Supply Industry (Pricing and Related Matters) Regulations 2013 (the Pricing Regulations) the Regulator is required to conduct a pricing investigation prior to making or revoking an approval. Further, the pricing investigation must be conducted prior to the expiry of the existing approval made by the Minister under Regulation 20(1) of the Pricing Regulations (31 December 2018).

While the pricing investigation was required to be completed before the expiry of the existing Instrument on 31 December 2018, completing the investigation and making the necessary approvals well before the Instrument's expiry date was intended to provide market participants with as much certainty as possible. In finalising the pricing investigation before the end of 2016 the Regulator was also responding to concerns raised by market participants about the potential impact on their respective forward contracting activities in the event that the approvals were made closer to the expiry date of the existing Instrument.

Notice of intention to conduct a pricing investigation

Following consideration of the issues raised during consultation, the Regulator announced its intention, to conduct a pricing investigation in relation to the Wholesale Contract Regulatory Instrument.

Issues Paper


In December 2015, the Regulator released an Issues Paper to provide context for, and stimulate discussion about, the scope of its proposed pricing investigation in relation to the Review of the Wholesale Contract Regulatory Instrument and called for submissions from interested parties. Submissions closed on Friday 22 January 2016 and one late submission was accepted.

Submissions were received from: 

  Aurora Energy Wholesale Issues 2015   (423Kb)

  Tasmanian Small Business Council Wholesale Issues 2015   (171Kb)

  Hydro Tasmania Wholesale Issues 2015   (553Kb)

  ERM Business Energy Wholesale Issues 2015   (313Kb)​

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