The Australian Energy Regulator (AER) has accepted a court Enforceable Undertaking from AGL in relation to the operation of its Broken Hill Solar Plant.
This follows AGL self-reporting to the Australian Energy Market Operator (AEMO) that the plant was non-compliant with its Generator Performance Standard (GPS). Modelling had been undertaken which showed that, under certain conditions, it was possible that the Broken Hill Solar Plant would not meet its Generator Performance Standards concerning frequency control matters. In March 2022 AGL approached the AER and offered an Enforceable Undertaking to address the non-compliances.
GPS compliance is considered a critical factor for AEMO to manage power system security, particularly as the energy sector transitions. The court Enforceable Undertaking provides prescriptive timelines for AGL to rectify the non-compliance.
The AER accepted AGL’s offer of a court Enforceable Undertaking as the most appropriate way to address the issue after considering the circumstances, including the self-reporting by AGL and a lack of relative harm from the alleged conduct. The AER has a range of enforcement outcomes at its disposal, ranging from Enforceable Undertakings and Infringement Notices to instituting court proceedings. It is important that market participants who identify non-compliances should approach the AER early to resolve these issues.
The AER also worked closely with AEMO and the relevant transmission network service provider, TransGrid, to ensure the acceptability of the Enforceable Undertaking.
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