Issue date

Large energy users who have contracts that reduce their exposure to the electricity spot price, such as power purchase agreements with generators, may wish to ‘opt in’ to manage contracting requirements under the Retailer Reliability Obligation (RRO).

Opt in applications for the next two forecast reliability gaps under the RRO will close:

  • On 24 April 2024, for the NSW December 2025-January 2026 gap period.
  • On 5 July 2024, for the South Australian January 2026-March 2026 gap period.

The AER has published a factsheet providing key information for customers considering opting in for these reliability gaps. 

Detailed instructions can be found in the AER’s Opt-in Guidelines.

About the RRO

The Australian Energy Market Operator (AEMO) assesses forecast demand against anticipated supply and issues reliability forecasts as part of its annual Electricity Statement of Opportunities. If AEMO identifies a forecast reliability gap in electricity supply for a participating region in three years’ time, it will ask the Australian Energy Regulator to issue a “T-3” reliability instrument for that region. Energy Ministers in participating regions can also make their own T-3 reliability instruments.

A T-3 Reliability Instrument puts retailers and other parties that purchase electricity directly from the wholesale energy market (‘liable entities’) on notice to enter into sufficient qualifying contracts to cover their share of the peak demand forecast during the forecast gap period. 

Certain large users of energy can choose to ‘opt-in’ to the RRO and become liable entities themselves, so that their own contracts with suppliers will count as qualifying contracts. The cut-off day for applications to opt-in will be set for 18 months from the date of the T-3 reliability instrument.