NEMMCO - AbsoluteAstronomy.com

The National Electricity Market Management Company Limited (NEMMCO) was the Wholesale Market and Power System Operator for the Australian National Electricity Market

National Electricity Market

The National Electricity Market is the name of the Australian wholesale electricity market and the associated synchronous electricity transmission grid....

(NEM). NEMMCO was established in 1996 to administer and manage the NEM, develop the market and continually improve its efficiency and as of 1 July 2009 was replaced by Australian Energy Market Operator

Australian Energy Market Operator

The Australian Energy Market Operator delivers an array of gas and electricity market, operational, development and planning functions. It manages the National Electricity Market and the Victorian gas transmission network. AEMO also facilitates electricity and gas full retail contestability,...

.

The governments of Queensland

Queensland

Queensland is a state of Australia, occupying the north-eastern section of the mainland continent. It is bordered by the Northern Territory, South Australia and New South Wales to the west, south-west and south respectively. To the east, Queensland is bordered by the Coral Sea and Pacific Ocean...

, New South Wales

New South Wales

New South Wales is a state of :Australia, located in the east of the country. It is bordered by Queensland, Victoria and South Australia to the north, south and west respectively. To the east, the state is bordered by the Tasman Sea, which forms part of the Pacific Ocean. New South Wales...

, the Australian Capital Territory, Victoria

Victoria (Australia)

Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....

, South Australia

South Australia

South Australia is a state of Australia in the southern central part of the country. It covers some of the most arid parts of the continent; with a total land area of , it is the fourth largest of Australia's six states and two territories.South Australia shares borders with all of the mainland...

and Tasmania

Tasmania

Tasmania is an Australian island and state. It is south of the continent, separated by Bass Strait. The state includes the island of Tasmania—the 26th largest island in the world—and the surrounding islands. The state has a population of 507,626 , of whom almost half reside in the greater Hobart...

were members of NEMMCO. Each of these governments nominated a director to the NEMMCO board.

NEMMCO was a company under Corporations law

Corporations law

Companies law is the field of law concerning companies and other business organizations. This includes corporations, partnerships and other associations which usually carry on some form of economic or charitable activity. The most prominent kind of company, usually referred to as a "corporation",...

. It operated on a break-even basis by recovering the costs of operating the NEM and running the organisation by levying fees against market participants.
The fees were complex, and comprised both fixed and variable components that took into account the type of participant and their share of trade in the market. The structure of fees payable to NEMMCO was determined periodically, while the actual fee levels were set annually.

NEMMCO managed the market and power system from two control centres in different states. Both centres operated around the clock, and were equipped with identical communication and information technology systems. The entire NEM, or individual regions within it, could be operated from either or
both centres. This arrangement was a means of ensuring continuous supply despite the risks that natural disasters or other events presented, and provided NEMMCO with the flexibility to respond quickly to dramatic changes in the market or the power system.

See also