Issue date
AER reference
AC 30/22

The Australian Energy Regulator (AER) has released guidance for electricity market participants on their obligations when offering and delivering contingency frequency control ancillary services (FCAS).

FCAS is one of the mechanisms used by the Australian Energy Market Operator (AEMO) to manage power system security. It is important that FCAS can be, and is delivered, when required as it forms a key part of the safety net measures to ensure AEMO can achieve and maintain power system security.

Key messages for market participants providing FCAS are to:

  • have a clear understanding and maintain visibility at all times of their plant’s capabilities
  • be aware of how plant changes may affect contingency FCAS delivery, and review capabilities after significant plant changes
  • regularly assess actual frequency response after a frequency event
  • have systems and processes in place to ensure compliance when engaging third parties
  • familiarise themselves with the requirements of AEMO’s Market Ancillary Service Specification and ensure they observe them.

Market participants should review their systems and processes and update them.

FCAS obligations fall within the AER’s Compliance and Enforcement Priority #3 – focusing on registered generators’ compliance with AEMO dispatch instructions and their ability to comply with their latest offers at all times.

The AER is continuing to act on this priority through the release of this compliance bulletin and ongoing enforcement work regarding FCAS obligations.