EUAA Submission: Enhancement of the RERT Mechanism
Emily Wood | July 26, 2018
The current uncertain state of the NEM and the tightening supply/demand balance supports the need for AEMO to have an efficient and low cost RERT type mechanism as part of its operational levers to meet the reliability standard.
The EUAA also recognise the important potential role of the RERT in AEMO’s procurer of last resort function under the proposed NEG. The EUAA has shown strong support for the overall NEG approach and for the majority of the design elements. If the architecture of the NEG is coupled with enduring bipartisan support we believe it will create greater investment certainty for all market participants and, over time, put downward pressure on energy costs while providing the system reliability and climate risk management that we need. While this should reduce the chances of AEMO ever being called upon to be the procurer of last resort, it is crucial to ensure the design elements of the RERT are fit for purpose and lowest cost to ensure the NEO is achieved.
This submission begins with our member experiences from the 2017/18 RERT (it is not good). We then comment on the ARENA-AEMO demand management trial and support its extension and conclude with specific responses to the paper’s questions.
Please see attached document for full details.
