Market Settlement and Transfer Solution Powers Competition for Retail Electricity in Australia

In collaboration with

Capgemini helps NEMMCO to administer and manage domestic electricity to almost eight million customers

The Situation The Result With the introduction of Full Retail Capgemini designed and built a highly- Competition in the Australian National configurable system —MSATS. The Electricity Market (NEM) and the project was delivered on-time, deregulated market expanding from connecting 1,000 users in 100 separate 18,000 to a potential 7.7 million organisations and involving an initial 4.7 customers, NEMMCO’s existing systems million domestic customers. MSATS and processes were insufficient. The supports disparate rule-based number of paper-based services would requirements of multiple state-based have placed a prohibitive cost on jurisdictions. retailers and customers attempting to switch once Full Retail Competition The Meter Data Management (MDM) commenced. component provides NEMMCO with scalability requirements that the market The Solution will require over the lifetime of the A project was launched to develop a solution. Market Settlement and Transfer Solution (MSATS). After a rigorous selection process, NEMMCO entrusted Capgemini as its partner.

The project needed to be fully configurable, not only to support changes in business rules, but to allow each state to retain flexibility.

The timeframe was ambitious…and“ despite a significant scope increase in the middle of the project, Capgemini was able to bring in the project on time and budget. NEMMCO could not have picked a better partner. ” NEMMCO Spokesperson the way we do it

How Nemmco and Capgemini Due to a legislated “go live” date and Because MSATS can support multiple Worked Together project profile, Capgemini agreed to states, new jurisdictions can be added The National Electricity Market aggressive contractual milestones. at any point. Also new rules for the Management Company Limited Following deployment, Capgemini jurisdiction can be loaded via a table (NEMMCO) was established in 1996 provided Applications Management or GUI interfaces. At its inception, the to administer and manage the (AM) support for 2 years. solution handled levels of complexity National Electricity Market (NEM). and volumes that had not yet been NEMMCO sought to develop, and The MSATS communications hub catered for in similar implementations continually improve, the market contains business components to elsewhere in the world. efficiency. It also maintains security of facilitate: the power system and coordinates A Key Performance Indicator (KPI) for system planning. • switching customers from one NEMMCO is a measure of the number retailer to another (CATS – of market minutes lost (MML) that The governments of Queensland, New Customer Administration & Transfer can be attributed to systems South Wales, the Australian Capital System) supporting the operation of the NEM. Territory, Victoria, South Australia and Capgemini put value-at-risk by Tasmania are members of NEMMCO. • providing wholesale market committing to the Market Minutes Each of these has a representative on settlement (via MDM) by managing Lost KPI that NEMMCO faced - and the NEMMCO board. metering data that supports each met the challenge! retailer’s aggregate retail position. In order to improve market efficiency, NEMMCO wanted to implement MSATS – a custom-built, J2EE-based hub facilitating communications and transactions between market participants. About Capgemini and the As much of the scope of MSATS, in Collaborative Business Experience particular trading arrangements and customer transfer rules had not been Capgemini, one of collaboration-focused methods and tools. finalised, Capgemini launched the the world’s foremost Through commitment to mutual success project by leveraging its Accelerated providers of Consulting, Technology and the achievement of tangible value, and Outsourcing services, has a unique we help businesses implement growth Solutions Environment (ASE). way of working with its clients, called strategies, leverage technology, and thrive the Collaborative Business Experience. through the power of collaboration. This brought together 70 participants and stakeholders in the Australian Backed by over three decades of industry Capgemini employs approximately electricity market. It allowed and service experience, the Collaborative 60,000 people worldwide and reported Business Experience is designed to 2004 global revenues of 6.3 billion euros. Capgemini to rapidly build consensus help our clients achieve better, faster, More information about our services, around the design and drive more sustainable results through offices and research is available at finalisation of the functional seamless access to our network of www.capgemini.com specification. world-leading technology partners and

Working in collaboration with all parties, the solution was then built at Capgemini Australia In collaboration with Capgemini’s Advanced Development Energy, Utilities & Chemicals Centre (ADC) in Chicago. The ADC Utilities Market Restructuring allowed the project to leverage Transformation Consulting existing in-house experts who had Advanced Development & Integration worked on similar projects in the US Applications Management market and beyond.