Issue date
AER reference
AC 15/23

The Australian Energy Regulator (AER) has published draft Reliability Compliance Procedures and Guidelines (draft Guidelines) for consultation. The draft Guidelines explain what is required, by both the AER and market participants, to comply with the Retailer Reliability Obligation (RRO) in accordance with the National Electricity Rules.

The draft Guidelines contain a new requirement for participants to provide certain information upon request from the AER. This will assist the AER to assess participants’ compliance with the RRO in a timely manner, and indicate to participants the information we might seek under the Guidelines.

The AER has also published a draft decision document that sets out our approach and responds to stakeholder comments on the related issues paper.

The AER invites interested stakeholders to make written submissions in response to the draft Guidelines, or any other matters relevant to developing the Guidelines, by close of business on Tuesday, 11 April 2023.

About RRO

The RRO is designed to support reliability in the National Electricity Market (NEM).

If the Australian Energy Market Operator 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.