Infringement notices issued to CS Energy and enforceable undertaking - failure to follow dispatch instructions and offer obligations

Sector: 
Segment: 
Category: 
Enforceable undertaking
Infringement notice
Release date: 
4 July 2016
Related provisions: 

Clauses 4.9.8(a) and (b) of the National Electricity Rules.

Event date: 
13 February 2014
Outcome: 

Enforceable undertaking and four infringement notices issued with total infringement penalties of $80 000.

Overview

Clause 4.9.8 of the National Electricity Rules (NER) requires registered participants to follow dispatch instructions issued by the Australian Energy Market Operator (AEMO) unless to do so would, in the participant’s reasonable opinion, be a hazard to public safety or materially risk damaging equipment. It also requires scheduled generators to ensure that the dispatch offers they submit to AEMO reflect, at all times, the capability of their generating units generate power.

The AER issued four infringement notices to CS Energy, the registered participant responsible for the Wivenhoe and Gladstone Power Stations in Queensland, because it had reason to believe that CS Energy failed to comply with clauses 4.9.8(a) and (b) by:

  • not following dispatch instructions issued to the Wivenhoe generating units, which over-generated by more than 200 MW, on two occasions in February 2014 (clause 4.9.8(a));  and
  • not ensuring that, on 13 February 2014, certain scheduled generating units at the Gladstone Power Station could comply at all times with their dispatch offers (clause 4.9.8(b)).

CS Energy paid a total infringement penalty of $80 000 on 27 June 2016. CS Energy has also put in place various measures to improve its compliance in this area and has offered court-enforceable undertakings to continue to do so. These measures include implementing alerts to traders when the generating units are away from target, and ongoing training for staff regarding NER obligations.