As part of the introduction of the SEM, a new unit dedicated to modelling the wholesale market was established within Regulatory Authorities' offices. The unit simulates the operation of the market and provides forecasts of wholesale prices and other data to support the work of the RAs. The work of the Market Modelling Group (MMG) primarily includes:
- Validation of key modelling tools;
- Implementation of the Directed Contracts workstream, a key element of the RAs' market power mitigation strategy ;
- Monitoring and analysis of Non Directed Contracts in the SEM;
- Input into other operational workstrerams across the RAs' offices, including retail tariffs, the Public Service Obligation (PSO) and the Capacity Payment Mechanism; and
- Advising the RAs and SEM Committee on key policy issues through analysis and modelling.