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Retail
About the RRO
The Retailer Reliability Obligation (RRO) commenced on 1 July 2019 to support reliability in the National Electricity Market (NEM).
The intention of the RRO is to be a long-term solution to ensuring reliability at the lowest cost by preparing for and eliminating forecast reliability gaps before they occur.
If AEMO identifies a material reliability gap 3 years and 3 months out, it will apply to the AER to trigger the RRO by making a reliability instrument. Each Minister for Energy in a NEM region also has the ability to trigger the RRO by making an instrument directly.
Where a reliability instrument is made, liable entities (retailers and other parties that purchase electricity directly from the wholesale energy market) are on notice to enter into sufficient qualifying contracts with generators to cover their share of a 1-in-2 year peak demand, and report their net contract position (NCP) to the AER.
Resources
Liable entities
This resource helps you determine whether you are a liable entity under the RRO.
NCP Report
A step by step of how to submit an accurate NCP report, which all liable entities will need to submit.
NCP Adjustment Applications
This is relevant to liable entities who have already submitted an NCP report and are wanting to adjust their NCP and resubmit their NCP report.
Opt-in Customers
This resource is relevant to large energy users who are considering opting-in.
Further information for market participants
Guidelines
Retailer reliability obligation - Reliability compliance procedures and guidelines
Retailer Reliability Obligation - Interim Contracts and Firmness Guidelines
Retailer reliability obligation - Interim reliability instrument guidelines
Retailer Reliability Obligation - Interim market liquidity obligation Guidelines
Retailer Reliability Obligation - Opt-In Guidelines
Register of reliability instruments
By 31 August each year, AEMO will identify any forecast reliability gaps in each NEM region in the coming five years using its Electricity Statement of Opportunities (ESOO). If AEMO identifies a material gap 3 years and 3 months out, it will apply to the AER to trigger the RRO by making a reliability instrument.
The AER will publish its decision, the reasons supporting that decision and if applicable, the reliability instrument.
You can find details of each reliability instrument, including indicative dates for key milestones, at the links below.