Ensuring reliable supply
The National Electricity Rules govern the operation of the National Electricity Market (NEM).
Under the National Electricity Rules (NER), the Australian Energy Market Operator (AEMO) can take action if required, to maintain or restore the power system to a reliable operating state.
There are different mechanisms that allow AEMO to access emergency reserves at times when the market is not able to meet high levels of demand. Typically, these events happen in times of extreme heat over the summer months.
Reliability and Reserve Emergency Trader (RERT)
When an event occurs in New South Wales and Victoria, AEMO may request generators to increase supply as well as ask large commercial users to significantly reduce load or shut down. In return, AEMO financially compensates those users. It is that cost that is then passed back to retailers, like Origin, who then pass the cost to customers who had consumed electricity in that region, at that time.
Why are you charged RERT?
RERT is calculated based on purchased load by energy retailers, then passed through to consumers based on their MWh consumption. Charges are received by the retailers in line with AEMO’s calendar which operates in arrears.
How is the RERT charge calculated?
RERT has two components:
1. Capacity or fixed charge
This represents payment to contracted participants to ensure they are available should AEMO deem it necessary to stabilise the power system.
2. Activation or variable charge
This charge applies when the service is activated. All events are listed on the AEMO website: RERT Reporting.
When an event occurs in South Australia, AEMO can request generators to increase supply where possible, as well as requesting large commercial users to significantly reduce load or shut down. In return, AEMO financially compensates those users for reducing their consumption.
This cost is then passed back to retailers, such as Origin, who then pass the cost to those customers who consumed electricity in that region, at the time of the event. AEMO charges differ depending on the region and customers are charged based on the region their supply is connected to.
All events are listed on the AEMO website: Market event reports.
How is the Directions charge calculated?
Direction charges are based on purchased load by energy retailers during the event which are then passed through to consumers based on MWh consumption by the customer during the event. Charges are received by the retailers in line with AEMO’s calendar which operates in arrears.
The Direction charge on your Origin invoice has been calculated using your actual usage at the time of the event.