AER Proposes Change to NEM Significant Price Reporting Guidelines
Greg Thorpe | 3rd November 2025The Australian Energy Regulator (AER) has finalized a review of the Significant price reporting guidelines for wholesale electricity in the National Electricity Market (NEM), proposing a shift in how high-price events are monitored and reported.
The key takeaway is a move away from a static trigger to a dynamic, data-driven approach, and the AER is now inviting stakeholders to have their say on the proposed changes.
The Significant Proposed Change
The AER has concluded that the current criteria for identifying a “significant price outcome”—a fixed threshold of $5,000/MWh—is no longer fit for purpose in the evolving NEM.
To improve the relevance and value of its reporting, the AER is proposing to move to a new methodology that identifies selected high-priced days each quarter, regardless of dollar value.
Under the new proposal, significant price outcomes would be determined by identifying:
- The highest priced day for each month.
- The next highest priced day in the calendar quarter.
This change ensures that the AER consistently investigates and reports on the most consequential price events, providing better transparency and more relevant insights into market dynamics.
Why This Matters
The AER’s Significant Price Reports provide:
- Stakeholders to assess whether the market is functioning effectively.
- A preliminary assessment of potential market power or compliance issues.
- A regulatory presence as a deterrent against undesirable market behaviour.
By focusing on the most material price outcomes, the AER can better target its resources to explain the key drivers of high energy price events, ultimately benefiting all stakeholders and policymakers.
Expert Review by Oakley Greenwood
To support its review, the AER engaged Oakley Greenwood’s Greg Thorpe and Matt Currie to provide a comprehensive report to assist the AER in formulating its recommendations.
Have Your Say (Consultation Details)
This is a critical opportunity for industry participants, consumer representatives, and other interested parties to provide feedback on the proposed reporting framework.
The AER is seeking submissions to the 1 December 2025 on the draft guidelines and the accompanying consultation paper.
Read the AER’s Consultation Paper and Draft Guidelines here.
Review the Oakley Greenwood Report here.
