Administered Scarcity Pricing Decision Paper
The SEM Committee is today, 23 June 2025, publishing its decision on Administered Scarcity Pricing (ASP).
After careful consideration of the feedback provided to the consultation (SEM-23-047), the SEM Committee has decided that the first option set out in the consultation paper, with one minor adjustment, best addresses the issues identified through this review of ASP.
Specifically, the definition of Short Term Reserve Quantity in the Trading and Settlement Code will be amended to refer to available Replacement Reserves only. The DSU capacity in interruptible load will also continue to be counted in the Replacement Reserve calculation.
It is worth making clear that the objective of this review and decision has not been to seek more frequent triggering of ASP but rather to ensure the mechanism is functioning correctly and as envisioned in the market design; a correction which should allow triggering of ASP as intended.
The RAs will now progress with the Trading and Settlement Code Modification process to give effect to this policy decision, which will involve further industry consultation.