Retailer reliability obligation - Interim market liquidity obligation guideline

Sector: 
Segment: 
Category: 
Retailer Reliability Obligation
Status: 
Date initiated: 
15 April 2019
Effective date: 
30 August 2019
Contact: 
General enquiries - Retailer Reliability Obligation RRO@aer.gov.au

Overview

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 final Rules came in to effect on 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.

Interim Market Liquidity Obligation (MLO) Guidelines

As set out in Rule 11.116.10, the AER must make and publish Interim Market Liquidity Obligation Guidelines by 31 August 2019. The Interim MLO Guidelines set out the AER’s approach to monitoring compliance with the obligation by MLO generators, approval of additional MLO products and MLO exchanges, and performance exemptions.

On 30 August 2019 we published the Interim Reliability Instrument Guidelines and final determination document.

Final determination - Deemed MLO generators in Victoria

The Rules deem MLO generators and MLO groups for the first two years of the RRO’s operation. The Rules provide for the AER to make a determination to add or remove generation capacity from MLO groups during the period where generators are deemed.

The AER is aware of an error in the list of deemed MLO generators and MLO groups for the Victoria National Electricity Market region in Rule 11.116.12, where the Jeeralang and Newport generators were not included EnergyAustralia’s MLO group. This decision resolves the error by allocating the capacity of those generators to EnergyAustralia’s MLO group.

On 30 August 2019 we published a final decision regarding the deemed MLO generators in Victoria.