Case study
National Electricity Code Administrator
Reviewing electricity pricing in Australia
The National Electricity Code Administrator (NECA) administers electricity market rules and procedures in Australia. The National Electricity Code contains the market rules. It sets out the objectives of the market, and the rights and responsibilities of market participants, the market manager NEMMCO and NECA.
NECA’s mission is to promote the effectiveness, efficiency and equity of the national electricity market and lead the development of the market towards more competitive, market-oriented outcomes. NECA was charged with a review of price structure in the Australian electricity market as a result of seven code-required reviews in the months following market start, at the end of 1998.
PA Consulting Group was retained as the most qualified consultants and because of the firm’s high credibility in the Australian electricity market. NECA wanted a consultant that could readily identify and analyze the substantive issues, that could bring credibility to the eventual recommended changes to the market, and that could act as a public voice for NECA on issues arising in the review. PA was chosen after making a presentation to, and holding discussions with, the NECA board.
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