Compliance update - Provision of essential system services

Sector: 
Category: 
Compliance check
Release date: 
4 November 2022
Event date: 
4 November 2022

Overview

The AER’s Provision of essential system services compliance update sets out guidance for Transmission Network Service Providers (TNSPs) on critical obligations in the provision of power system services under the National Electricity Rules, with a focus on TNSPs meeting inertia shortfalls and system strength gaps as declared by the Australian Energy Market Operator (AEMO).

The National Electricity Market generation mix has changed over recent years, with an emergence of new technologies and the retirement of some traditional generation types. The provision of system services by TNSPs is critical to keep the national electricity grid in a safe and stable operating state through this transition.

It is the AER’s expectation that TNSPs maintain focus on these obligations when procuring the relevant system services. Participants should review their practices in light of the information set out in this compliance update and amend them as appropriate.