The Retailer Reliability Obligation (RRO) is designed to support reliability in the National Electricity Market (NEM). In particular it encourages retailers, and some large energy users, to establish contracts for their share of demand for a prescribed period. The RRO can be triggered if the Australian Energy Market Operator (AEMO) identifies a reliability gap in a region of the NEM as part of its Electricity Statement of Opportunities. The South Australia Minister also has the power to do this (under NEL Part 7A 19B (1)) if it appears to the Minister on reasonable grounds that there is real risk that the supply of electricity in all or part of South Australia may be disrupted to a significant degree on 1 or more occasions during a period in the instrument.
T-1 Reliability Instrument
On 24 October 2022 the AER made a T-1 Reliability Instrument for South Australia from 8 January to 29 February 2024 inclusive.
The T-1 Reliability instrument applies to the South Australian region of the NEM for the trading intervals between 5 pm and 9 pm Eastern Standard Time, each weekday during the period 8 January to 29 February 2024 inclusive. AEMO's one-in-two year peak demand forecast for the forecast reliability gap period is 3,044 MW (reported on a 50% Probability of Exceedance, ‘as generated’ basis).
Liable entities are required to record their net contract position for each trading interval in the forecast reliability gap period of 8 January 2024 to 29 February 2024 as it is on the contract position day (6 January 2023) or new entrant contract position day (9 January 2024). The report must be provided to the AER by reporting day (31 July 2023) or by new entrant reporting day (30 April 2024) where applicable.
T-3 Reliability Instrument
On 7 January 2021, the South Australia Minister for Energy and Mining triggered the RRO in South Australia for the first quarter of 2024.
Under South Australia’s declaration, the details of the prescribed period are each working weekday from 8 January 2024 – 15 March 2024 for the trading periods between 3 PM and 9 PM EST.
Market Liquidity Obligation
The Market Liquidity Obligation (MLO) is a market making requirement designed to facilitate transparency and liquidity in the trading of electricity futures contracts relating to a forecast reliability gap. The MLO operates between T-3 and T-1.