Settlements

Settlements ensures that all financial transactions that occur in trading in the Gas Supply Hub (GSH) are billed and cleared, so that market participants can receive the payments that are due to them.

This page outlines AEMO’s settlements process and methodology and provides guidance on how interest rates are calculated.

Settlements and prudential process and methodology

During the settlements process, AEMO collates the data from wholesale trades of natural gas, which is used to determine market fees payable by participants, and to facilitate billing and clearing of financial transactions between those participants. Settlement statements – both payable and receivable – are produced by AEMO monthly.

The following document provides the methodology established under rule 536(3) of the National Gas Rules (NGR) and clause 17 of the Exchange Agreement (EA) to determine the amounts payable by, or to, market participants in the GSH.

Interest rate

Where interest is applied to settlement amounts, AEMO has determined the interest rate – as referenced in the NGR – to be the one-month Bank Bill Swap Reference Rate mid-rate determined by the Australian Securities Exchange (ASX).

For all queries about settlements in the GSH, please contact AEMO’s Information and Support Hub.