The Authority has completed a post-implementation review of the wholesale settlement and prudential security arrangements introduced in March 2015. Our analysis shows the initiative has been successful, delivering benefits far in excess of the implementation costs. Since these arrangements were introduced:

  • prudential costs have become less volatile
  • retail costs have fallen and retail competition has continued to strengthen
  • credit risk for generators has fallen and overall risk of non-payment remains low
  • prudential costs faced by direct purchasers have not changed
  • the amount of unutilised prudential security has decreased, reducing costs incurred unnecessarily
  • some prudential security types are now used more often.