The AER has published its draft decision to amend the interim Contracts and Firmness Guidelines (C&F Guidelines) to reflect a recent rule change to the National Electricity Rules (NER) for the Retailer Reliability Obligation (RRO).
The C&F Guidelines are one of 5 guidance documents that set out how the AER exercises its functions under the Retailer Reliability Obligation.
When the RRO is triggered, the NER requires retailers (and any large customers who opt-in) to hold sufficient electricity contracts to meet their share of demand. The C&F Guidelines set out how to report on these contracts to the AER.
On 14 November 2024, the AEMC made the Retailer reliability obligation exemption for scheduled bi-directional units rule (RRO exemption for BDUs rule change). The purpose of this rule charge was to exempt scheduled bi-directional units (including grid scale batteries and pumped hydro energy storage) from being liable under the RRO.
The focus of this consultation is to update the C&F Guidelines to address this rule change.
We plan to publish the final decision of the amended C&F Guidelines in August 2025.
In 2026, the AER will conduct a broader review of the C&F Guidelines. Under this review, we will consider the Integrating price-responsive resources into the NEM Rule 2024 No. 24 rule change (IPRR rule change) alongside a broader range of issues. The Reliability Instrument Guidelines and Market Liquidity Obligation Guidelines will also be updated alongside the C&F Guidelines, with the aim to finalise all 3 guidelines in 2026.
This C&F Guidelines consultation is seeking feedback on the changes made to address the RRO exemption for BDUs rule change. The AER welcomes advance views on the planned broader 2026 review of the C&F Guidelines at this time.
Issues raised on other aspects of the C&F Guidelines will be addressed in the 2026 review.
