performance standards may materially increase result in a fine of up to $100 000 and/or other the risk of major power system incidents. appropriate court orders. The Electricity Rules require generators to plan With the advent of a carbon price and and design their facilities to ensure that, among unfavourable economic conditions, there have other things, they operate in a manner that been numerous cases of generators going offline complies with the applicable performance or being put in ‘dry-storage’. If generating plants standards (clause 5.2.5(a)). The Electricity that are placed in Rules also provide that a registered participant dry-storage allow their technical compliance who plans, owns, controls or operates a plant to programs to lapse, there may be a heightened which a performance standard applies must: risk to power system security upon those plants’ return to service. institute and maintain a compliance program, within a prescribed timeframe and in For this reason, we expect generators that are accordance with certain criteria (clause offline for any period of time to continue to 4.15(b) and (c)) comply with all applicable obligations under the Electricity Rules for as long as they remain maintain compliance program records and registered in the National Electricity Market other prescribed records for 7 years and, if (NEM). Continuing appropriate testing and requested, deliver such records to the AER maintenance of the plant should avoid within 5 business days or other specified non-compliance that may materially affect power period (clause 4.15(e)) system security if the generator was to return to service. immediately notify AEMO if the plant is breaching a performance standard or is likely AEMO holds a consistent view regarding testing to breach (clause 4.15(f)) and maintenance and has released a guideline on what might constitute Good Electricity Industry immediately notify AEMO and the relevant Practice in relation to NSP when the plant has returned to long-term storage of generating facilities in the compliance with the relevant performance NEM. This guideline is available on . standard (clause 4.15(h)). The above clauses are civil penalty provisions. This means that if the provisions are breached, the AER can issue a $20 000 infringement notice or institute court proceedings which may
performance standards may materially increase the risk of major power system incidents. The Electricity Rules require generators to plan and design their facilities to ensure that, among other things, they operate in a manner that complies with the applicable performance standards (clause 5.2.5(a)). The Electricity Rules also provide that a registered participant who plans, owns, controls or operates a plant to which a performance standard applies must: institute and maintain a compliance program, within a prescribed timeframe and in accordance with certain criteria (clause 4.15(b) and (c)) maintain compliance program records and other prescribed records for 7 years and, if requested, deliver such records to the AER within 5 business days or other specified period (clause 4.15(e)) immediately notify AEMO if the plant is breaching a performance standard or is likely to breach (clause 4.15(f)) immediately notify AEMO and the relevant NSP when the plant has returned to compliance with the relevant performance standard (clause 4.15(h)). The above clauses are civil penalty provisions. This means that if the provisions are breached, the AER can issue a $20 000 infringement notice or institute court proceedings which may result in a fine of up to $100 000 and/or other appropriate court orders. With the advent of a carbon price and unfavourable economic conditions, there have been numerous cases of generators going offline or being put in ‘dry-storage’. If generating plants that are placed in dry-storage allow their technical compliance programs to lapse, there may be a heightened risk to power system security upon those plants’ return to service. For this reason, we expect generators that are offline for any period of time to continue to comply with all applicable obligations under the Electricity Rules for as long as they remain registered in the National Electricity Market (NEM). Continuing appropriate testing and maintenance of the plant should avoid non-compliance that may materially affect power system security if the generator was to return to service. AEMO holds a consistent view regarding testing and maintenance and has released a guideline on what might constitute Good Electricity Industry Practice in relation to long-term storage of generating facilities in the NEM. This guideline is available on .
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