EUAA Submission: Review of the Retailer Reliability Obligation

EUAA Submission: Review of the Retailer Reliability Obligation

Emily Wood | May 4, 2023

‘…The EUAA has been generally supportive of the RRO since its introduction. However recent events have led us to the conclusion that it is not operating as was originally intended, or at least not always in consumers’ interests.

The reliability rules around the T-3 trigger are now effectively irrelevant

When originally introduced the policy, intent was to base that trigger on the reliability forecast in the AEMO ESOO. This would provide a signal to the market that additional generation was required.  The decision by Energy Ministers to have the ability to call a T-3 trigger irrespective of the AEMO forecasts, defeats the original RRO purpose.

It seems the RRO has become a way to help manage political risk rather than a market driven efficiency instrument. An Energy Minister deciding on a T-3 trigger when forward prices do not indicate any likely shortfall is not going to provides any incentive to build new generation or storage projects, nor does it encourage EUAA members to consider providing demand response…’

 

Please download attached to read full submission.

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