Today the Reliability Panel published new Guidelines for the Reliability and Emergency Reserve Trader (RERT). The RERT allows the Australian Energy Market Operator (AEMO) to contract for electricity reserves ahead of a period where AEMO projects an insufficient amount of supply (known as a projected reserve shortfall).
This update to the Guidelines follows a final rule determination made by the AEMC in June 2016 which changes the timeframe for AEMO to contract for electricity reserves using the RERT from nine months to ten weeks.
By enabling AEMO to take action closer to the time of the projected shortfall, the projections are more up to date and accurate, and the market has more time to respond to any gaps in supply before the RERT is triggered. This benefits consumers since the RERT costs consumers more than if electricity is supplied by the market in the usual way.
The RERT, or some form of power for the market operator to contract for reserves, has been a feature of the National Electricity Market since its start in 1998. The RERT Guidelines clarify AEMO’s use of the RERT, including what information AEMO must take into account when deciding whether to exercise the RERT, and also the actions that AEMO may take to be satisfied that the shortfall is unlikely to be addressed by the market.
AEMO will now update the RERT procedures to take into account changes made to the Rules and the RERT Guidelines.
The new RERT Guidelines will commence on 1 November 2017.
Media: Prudence Anderson 0404 821 935 or DL (02) 8296 7817