Because AEMO isn't always right.
Second largest expense
The average retailer's energy costs are 30% or more of their entire annual costs. These are big numbers - exceeded solely by network charges.
Energy costs are crazy volatile
And your energy costs are fully exposed to the volatility of the spot price - jumping from an average of $40/ MWh up into the land of VOLL around $15,000 per MWh. Occasionally they'll be negative. And it can change every 5 minutes - it's one of the most volatile markets in the world.
Big volatile dollars demand to be reconciled.
In all its glory. There's two major changes happening at the same time in October 2021. We get 5MS - pricing and consumption for every 5 minutes - as well as Global Settlements ( no more settlement by difference ). And let's add UFE changes into the mix, going fully online in May 2022. Our Global has all variations covered.
The old Pool Settlements process was a settlement by difference process at the 30 minute interval level. Global is backward compatible with the older Market Settlements too.
Seamless Cutover from Market to Global
Navigating the old and the new world presents a major challenge. Two systems or one? How is the information presented? . Global solves these challenges by seamlessly reconciling all settlement types and presenting them using consistent and thoughtful designs. We've done the heavy lifting here conceptually - so that you don't have to!