Issue date
AER reference
AC 58/23

The Australian Energy Regulator (AER) has released its final Reliability Compliance Procedures and Guidelines (the Guidelines) and final decision to support the Retailer Reliability Obligation (RRO) framework.

The Guidelines outline: 

  • RRO requirements liable entities need to comply with under the National Electricity Rules, including the policies, systems and procedures to monitor their own compliance;
  • a requirement to provide certain information upon request from the AER; and
  • information on how the AER will assess compliance.

For the South Australia T-1 instrument that applies for periods between 8 January to 29 February 2024, liable entities must submit their Net Contract Position (NCP) reports by 31 July 2023. To assist liable entities with this process, the AER has published templates and will also shortly contact relevant liable entities to provide instructions on how to submit their NCP report.

About RRO

The Retailer Reliability Obligation (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.