The Energy Offer Price Floor is the lowest price that electricity can be offered into the Wholesale Electricity Market.
Since 1 October 2023, the Wholesale Electricity Market (WEM) has operated under new rules where energy and five frequency co-optimised essential system services are co-optimised and dispatched in five-minute intervals.
Under the transitional provisions for the commencement of the new market, the Energy Offer Price Floor from 1 October 2023 was deemed to be -$1,000/MWh, which was the same value as the Minimum STEM Price that applied under the Pre-Amending Rules.
The ERA must review the Energy Offer Price Floor at least once every three years and determine whether the Energy Offer Price Floor is appropriate. If the ERA determines that the Energy Offer Price Floor is not appropriate, a new value must be determined that will be effective from the date published in the ERA’s final determination.
For historical versions of the review, please see the Minimum STEM Price Review.
