AER circulates letter to remind generators of compliance obligations

Yesterday the AEMC reminded participants about compensation processes.

Given the ongoing discussions about these types of yo-yos of Available Generation (including the merits and perils of such behaviours) it’s no surprise to see the AER circulating this letter to remind generators of their compliance obligations.  In particular, the letter notes:

‘This behaviour may be motivated by generators seeking to avoid the administered pricing compensation process in favour of the AEMO directions compensation process’.

A timely reminder from the AER!


The letter is located on this page on the AER website

That page also includes this correspondence about ‘Retailer obligations and promotion of competition and consumer protection in the National Electricity Market’ from 10th June 2022.

Thanks to Lynne Gallagher (CEO of the Energy Consumers Australia) for highlighting this release from the AER.  Lynne writes here that:

‘It is significant that today the AER has taken the step of reminding generators of their obligations, confirming that generators are “withdrawing available capacity from the market”. This is creating significant anxiety amongst consumers who fear that they will have blackouts this week, because only a week ago they were told that significant capacity was unavailable – due to lack of coal, lack of gas and coal generators going off line. It is critical that households and small businesses hear a consistent message from experts and Ministers, that they dont have to go without the power they need. Though they do need to be energy wise.’

From a WattClarity point of view, that’s part of the reason why we’ve included this caveat at the top of this most recent LOR3 forecast summary.

About the Author

Paul McArdle
One of three founders of Global-Roam back in 2000, Paul has been CEO of the company since that time. As an author on WattClarity, Paul's focus has been to help make the electricity market more understandable.

2 Comments on "AER circulates letter to remind generators of compliance obligations"

  1. Looking at strange events, reserve (dispatched generation less load and export) has been negative at times in Vic and NSW, while generators appeared to operate off target (IC flow suggesting denand was met). YWPS unit 4 started up yesterday afternoon, then tripped right near peak demand.

    Anyone know why basslink is constrained to zero in the Tas to Vic direction?

  2. So the chair thinks being forced to sell at $300/mwhr when your inputs are >$1,000/mwhr is not “reasonable cause” to stop offering. Is this guy straight out of communist russia?

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