Under the Retailer Reliability Obligation (RRO), liable entities are subject to contracting and reporting requirements if a reliability instrument is made.
Liable entities are Market Customers (electricity retailers or large energy users that purchase electricity directly from the wholesale electricity market). In certain circumstances, other customers may be eligible to opt-in to the RRO rather than having their retailer manage the obligation on their behalf.
- Large opt-in customers: electricity customers who purchase electricity from a Market Customer and have consumption in excess of a consumption threshold of 50 GWh per annum in the relevant region can apply to the Australian Energy Regulator (AER) to register as a large opt-in customer. They must opt-in for the entire load at a connection point.
- Prescribed opt-in customers: electricity customers that do not meet the eligibility criteria to register as a large opt-in customer, but satisfy the prescribed customer opt-in thresholds, can apply to the AER to register as a prescribed opt-in customer based on eligibility criteria. They may opt-in for all or part of the load at a connection point.
Once approved as an opt-in customer in either category, an opt in customer will be a liable entity for the relevant reliability instrument:
- A registered opt in customer will be required to report their net contract position for a forecast reliability gap period to the AER. Reports must be submitted in accordance with the National Electricity Rules, and lodged in accordance with, and in the form specified by, the AER’s Contracts and Firmness Guidelines.
- In the event that a registered opt-in customer’s share of load is not covered by their reported net contract position for the specified period, it will be required to pay a portion of the costs for the Procurer of Last Resort, up to an individual maximum of $100 million.
Information for opt-in customers and applicants
Information on the opt-in process, including the processes for registering, deregistering or amending registration, and the criteria for assessing opt-in eligibility, are set out in the AER’s Opt in Guidelines.
Applications and enquiries about the opt-in application process can be sent to RRO@aer.gov.au.