The South Australia Firm Energy Reliability Mechanism (FERM) scheme is intended to support the security, reliability and affordability of South Australia’s electricity supply as the state increases its use of renewable energy.
As a Scheme Regulator we are required to make an annual contribution determination to ensure the independent Financial Vehicle has sufficient funds to meet its liabilities. These liabilities include, the costs of underwriting new renewable generation, storage or firming investment, and the administration costs of the Scheme entities.
The South Australia Transmission Network Service Provider, ElectraNet, is required to pass the Scheme costs through to transmission service customers, which are essentially passed on to South Australian electricity consumers.
Our guideline and model set out our process and method for how we make contribution determinations. We have also developed a communication to assist entities in its preparation for the AER’s first contribution determination.