31LTES agreement for generation infrastructure—the Act, s 46(2)(f)

31 LTES agreement for generation infrastructure—the Act, s 46(2)(f)

31 LTES agreement for generation infrastructure—the Act, s 46(2)(f)

An LTES agreement for the construction and operation of generation infrastructure must give the LTES operator an option to exercise a derivative arrangement that—

(a) is a fixed shape, fixed volume derivative arrangement, or

(b) is a kind of arrangement the consumer trustee is satisfied—

(i) is in the long-term financial interests of NSW electricity customers, and

(ii) allows for the reasonable forecasting of financial impacts to NSW electricity customers, including impacts arising from the volume of electricity produced by the LTES operator throughout the day and over the term of the agreement, and

(iii) has risks, including basis risk, that can be managed under the risk management framework.

cl 31 (previously cl 16E): Renumbered 2022 (366), Sch 1[9].