The Australian Energy Market Commission (AEMC) is seeking feedback on the operation of the ‘retailer reliability obligation’ (RRO) put in place to support the reliability of the electricity system. 

As the electricity market transitions toward net zero and more renewable energy sources connect to the system, reliability needs to be carefully managed to meet the needs of households, businesses and industry.  

In 2019, at the advice of the Energy Security Board (ESB), Federal and State Energy Ministers agreed to the RRO as a supplementary measure to the existing settings to help ensure a reliable supply of power for consumers. 

In a consultation paper released today, the AEMC is seeking stakeholder feedback on operational aspects of the RRO to ensure it is working as intended. 

On implementation, the RRO was designed to encourage new investment in the dispatchable energy technology that the system needs to operate reliably by driving retailers to establish contracts with other parties to ensure they are adequately placed to fulfil energy demand. 

The RRO does this by requiring retailers to obtain contracts that cover their expected demand when a potential shortfall in supply is anticipated by the Australian Energy Market Operator (AEMO). 

The AEMC is required under the national electricity rules (NER) to deliver a final report by June 2023, however the timeframe for delivery will be extended, with a final report expected to be released in early 2024. 

The extended timeframe will allow the AEMC access to more information and insights about market performance with the application of the RRO in place, from across a greater time period. 

Submissions in response to the consultation paper are being accepted until Thursday, 4 May 2023.   

Media: Jessica Rich, 0459 918 964,

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