The AER has published an issues paper to commence public consultation on developing Reliability Compliance Procedures and Guidelines to support the Retailer Reliability Obligation (RRO) mechanism in the National Electricity Market (NEM).
The Issues Paper seeks stakeholder feedback on various aspects of the AER’s proposed approach to developing guidelines that will explain what is required, by both the AER and market participants, to comply with the RRO in accordance with the National Electricity Rules.
The AER invites interested stakeholders to make written submissions in response to the specific questions or issues raised in the Issues Paper, or any other matter relevant to the development of the Guidelines, by the close of business on 8 December 2022.
The Retailer Reliability Obligation (RRO) is designed to support reliability in the NEM.
If AEMO identifies a reliability gap in a region of the NEM as part of its Electricity Statement of Opportunities, it must provide the AER with a reliability instrument request, which we then review in accordance with the decision-making criteria set out in the National Electricity Rules.
The RRO encourages retailers, and some large energy users, to establish electricity market contracts for their share of demand for a confirmed reliability gap period.
Should higher than average demand eventuate, the AER has a role in assessing whether businesses had established sufficient contracts as required. We will undertake this role as set out in the Reliability Compliance Procedures and Guidelines.