The Australian Energy Regulator (AER) has published the draft FERM Scheme Regulator guideline for South Australia’s Firm Energy Reliability Mechanism (FERM) Scheme.
The FERM scheme is intended to support the security, reliability and affordability of South Australia’s electricity supply as the state increases its use of renewable energy.
The scheme sets an annual target for reserve electricity that can be supplied at short notice for up to 8 hours.
We were appointed as a Scheme Regulator, and one of our functions is the making and varying of contribution determinations. The contribution determination uses the expected costs of the scheme to identify the funding required to meet the scheme’s liabilities over a regulatory year and sets out the amount a Transmission Network Service Provider needs to contribute to match this funding.
Our draft guideline sets out how we will undertake this function.
More information on the draft guideline
We expect to publish our final guideline in June 2026.
