The Australian Energy Regulator (AER) has today announced its appointment as a Scheme Regulator for the South Australia Firm Energy Reliability Mechanism (FERM).
The FERM Regulations were finalised on 18 September 2025 under the National Electricity (South Australia) (Firm Energy Reliability and Orderly Exit Management) Regulations 2025.
The Scheme is designed to support sufficient long duration firm capacity in South Australia, which is types of generation or storage that can supply electricity for more than 8 hours continuously, helping to ensure secure, reliable and affordable electricity for the state.
As a Scheme Regulator, the AER is responsible for monitoring compliance with the Scheme, making annual contribution determinations, publishing the Scheme Regulator guideline and approving a risk management framework.
Our first action in this role was to approve the risk management framework that applies to the Financial Vehicle under the Scheme. The framework was developed by the Scheme Administrator, AusEnergy Services Limited, to manage risks associated with FERM contracts and protect the financial interests of South Australian electricity consumers.
The Financial Vehicle will apply the approved framework to manage specific risks under the Scheme. It will also enter into FERM contracts with long duration capacity providers, supporting private sector investment in eligible electricity generation, long duration storage and firming projects in accordance with FERM Regulations.
More information on the Scheme can be found on the South Australia Department for Energy and Mining website.