The Australian Energy Regulator (AER) is supporting improving reliability in the National Electricity Market (NEM) by implementing the Retailer Reliability Obligation (RRO) alongside the Energy Security Board (ESB).
The ESB was tasked to develop the National Electricity Rules (the Rules) necessary to implement the RRO. The final Rules came into effect on 1 July 2019.
As set out in the Rules, the AER is responsible for developing a number of guidelines on certain aspects of the RRO.
Interim market liquidity obligation guidelines
As set out in Rule 11.116.10 the AER must make and publish interim market liquidity obligation (MLO) guidelines by 31 August 2019. The interim MLO guidelines set out the AER’s approach to monitoring compliance with the RRO by MLO generators, approval of additional MLO products and MLO exchanges, and performance exemptions.
On 30 August 2019 we published the interim reliability instrument guidelines and final determination document.
The Rules require the AER to develop and publish the MLO register by 31 May 2021. The MLO register replaces the deemed list of generators in the transitional rules and outlines the MLO generators and MLO groups in participating NEM regions responsible for performing the obligation from 1 July 2021.
In accordance with National Electricity Rules clause 4A.G.23 the AER has reviewed and subsequently approved the application by FEX Global Pty Ltd to be an MLO exchange. Participants now have the opportunity to trade MLO products on either the ASX24 or the FEX as these are both recognised MLO exchanges.