The Retail Reliability Obligation (RRO) is designed to support reliability in the National Electricity Market (NEM). In particular it encourages retailers, and some large energy users, to establish contracts for their share of demand for a prescribed period.
The RRO can be triggered if the Australian Energy Market Operator (AEMO) identifies a reliability gap in a region of the NEM as part of its Electricity Statement of Opportunities. Each Minister for Energy in a NEM region also has the ability to trigger the RRO by making an instrument directly.
On 2 January 2025, the South Australia Minister for Energy and Mining triggered the RRO in South Australia for the first quarter of 2028.
Ministerial T-3 Reliability Instrument
Under South Australia’s declaration, the T-3 Reliability instrument applies to the South Australia region of the NEM for the trading intervals between 3:00 pm and 9:00 pm Eastern Standard Time each working weekday during the period of 10 January 2028 to 17 March 2028 inclusive.
Market Liquidity Obligation
The Market Liquidity Obligation (MLO) is a market making requirement designed to facilitate transparency and liquidity in the trading of electricity futures contracts relating to a forecast reliability gap. The MLO operates between T-3 and T-1 when the RRO is triggered. MLO generators under the MLO are required to post bids and offers, with a maximum spread, on an approved exchange for standardised products that cover the period of the gap.
In South Australia the MLO generators are AGL and ENGIE. The MLO begins on 9 January 2025.