Retailer reliability obligation - Draft interim contracts and firmness guideline

Retailer Reliability Obligation
Date initiated: 
23 May 2019
Effective date: 
31 August 2019
General enquiries - Retailer Reliability Obligation


The Australian Energy Regulator (AER) is supporting improving reliability in the NEM by implementing the Retailer Reliability Obligation (RRO) alongside the Energy Security Board (ESB).

The ESB was tasked to develop the National Electricity Rules (the Rules) necessary to implement the Obligation. The RRO Rules were published on 9 May 2019. A revised rules package was released on 9 May 2019. The final Rules are proposed to be in place by 1 July 2019.

As set out in the Rules, the AER is responsible for developing a number of Guidelines on certain aspects of the RRO.

Draft Interim Contracts and Firmness Guideline

As set out in draft Rule 4A.E.8 the AER must create a Contracts and Firmness Guideline. The guideline sets out the AER’s approach to qualifying contracts, contract firmness methodology, the treatment of non-qualifying contracts, the approval process for non-standard qualifying contracts, the establishment and maintenance of an Auditors Panel, the submission of net contract position reports, information requirements of liable entities, as well as its approach towards monitoring compliance with the obligation.

A final Interim Contracts and Firmness Guideline, taking in to account stakeholder submissions, will be published by 31 August 2019.


Submissions on the Draft Interim Contracts and Firmness Guideline closed on 19 June 2019.


As part of the consultation on the guideline a workshop was held on 14 June 2019.