The South Australia Firm Energy Reliability Mechanism (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.
As a Scheme Regulator we are required to make an annual contribution determination to ensure the independent Financial Vehicle has sufficient funds to meet its liabilities. These liabilities include, the costs of underwriting new renewable generation, storage or firming investment, and the administration costs of the Scheme entities.
The South Australia Transmission Network Service Provider, ElectraNet, is required to pass the Scheme costs through to transmission service customers, which are essentially passed on to South Australian electricity consumers.
Our guideline sets out our process and method for how we make contribution determinations under the National Electricity (South Australia) (Firm Energy Reliability and Orderly Exit Management) Regulations 2025 (FERM Regulations).
The guideline explains how we:
- collect and assess information from scheme entities
- calculate annual contribution amounts to be recovered through the scheme
- determine and maintain a minimum prudent cash balance for the FERM Fund
- issue contribution determinations and contribution notices to transmission network service providers.
The guideline and accompanying communication provide transparency on the AER’s role and processes under the FERM Regulations, including the type of information we may require, the methodology we will apply, and the timing of key steps in the annual contribution determination process.