Market Price Cap

In this short page, we will explain about the Market Price Cap – which works in tandem with the Cumulative Price Threshold.

The page is a work-in-progress, so bear with us.

(A)  Why is there a Market Price Cap?

When the NEM started, the Market Price Cap (MPC) was called VOLL (the Value of Lost Load).

 

(B)  How the Market Price Cap is set?

Will link in here some useful references

 

(C)  How the Market Price Cap has trended over time?

Here’s a table here of how the Market Price Cap has changed:

Dec 1998
(start of the NEM)
At the start of the NEM, the Market Price Cap was known as VOLL, and was set at $5,000/MWh.
When? The Market Price Cap was increased to $10,000/MWh
When? The Market Price Cap was increased to $12,500/MWh
When? Something in between, from memory
When? The Market Price Cap was increased to $14,500/MWh
When? The Market Price Cap was increased to $14,700/MWh

More?