On 31 August 2022, the Australian Energy Market Operator (AEMO) submitted its compliance report for the 2022 Electricity Statement of Opportunities (ESOO) to the AER, alongside the release of the 2022 ESOO. This report is required by the AER's Forecasting Best Practice Guidelines and outlines how AEMO has had regard for and met the requirements for its forecasting activities as set out in our Forecasting Best Practice Guidelines.
Our guidelines provide guidance for AEMO's forecasting practices and processes as they relate to the IASR, the ISP and reliability forecasts such those as included in the ESOO. Our guidelines also place certain, binding requirements and considerations that AEMO must address in these compliance reports as per clause 5.22.5(j) of the National Electricity Rules (NER).
NER clause 4A.B.5(b) states that guidance from our Forecasting Best Practice Guidelines must have regard to the following principles:
- Forecasts should be as accurate as possible, based on comprehensive information and prepared in an unbiased manner.
- The basic inputs, assumptions and methodology that underpin forecasts should be disclosed.
- Stakeholders should have as much opportunity to engage as is practicable, through effective consultation and access to documents and information.