Retailer Reliability Obligation
To help manage reliability with increasing levels of intermittent renewable energy, the Council agreed to implement the Retailer Reliability Obligation (RRO). The RRO commenced on 1 July 2019 and was designed by the independent Energy Security Board.
The RRO will ensure energy retailers are accountable for reliability in a way they haven’t been before. If the RRO is triggered, it will require retailers to enter into sufficient contracts to meet their share of expected system peak demand. This will provide an incentive for market participants to invest in the right technologies in regions where it is needed, to support reliability in the National Electricity Market.
The RRO is an outcome of extensive consultation beginning in October 2017. The Australian public, industry, and market bodies have been involved in the design of the RRO to ensure that it is fit for purpose and will deliver on its objectives. The Australian Energy Regulator and the Australian Energy Market Operator are now running a full consultation process for the development of supporting guidelines to ensure that this reform is effective.
On 19 December 2018, the Council agreed to the final draft bill of the National Electricity Law amendments required to implement the RRO. These amendments were passed by the South Australian Parliament on 4 June 2019. The COAG Energy Council also agreed to the final draft Rules on 4 June 2019.
More information can be found in the RRO Bulletin.