Reliability and Emergency Reserve Trader (RERT)

 RERT is a function managed by the Australian Energy Market Operator (run by the Federal Government) to maintain network reliability under extreme demand conditions. 

 Earlier this year there was a high demand period in Queensland where supply could not meet demand.  Under these circumstances AEMO calls upon two types of parties; first are large energy users, these are asked to ‘turn off’ or ‘power down’, second are owners of generation units who can quickly begin to generate additional electricity to meet demand.    All this is done to avoid massive power outages and damage to the electricity network

This comes at a cost and given it is all short notice, the cost is high.  Those asked to turn off or power down are compensated and the generation units ‘sell’ their electricity to the grid for an inflated price.

 This cost is passed onto electricity retailers (like LPE) in proportion to the amount of energy our customers used over this high-demand period.  We then pass this on to our customers.

There are two things we would like you to know.  First is AEMO can call upon the RERT function without prior notification and they do not consider how much it is going to cost.  Second is Queensland’s government's lack of management of generation, transmission and distribution network absolutely caused the supply issues as well as many years of not implementing or investing in adequate energy or environmental policy.

 We would like to apologise for the RERT charge appearing on your bill as ‘Overdue’.  This is a very rare charge for us to apply and our billing platform limitations caused this error.

 The rules governing Energy Reserves, Emergency Actions, RERT charging and Reserve Scheduling can be found in the National Energy Rules which can be found on the Australian Energy Market Commission website https://www.aemc.gov.au/