What is RERT and why is my business being billed for it?

Share now:         Copied!

The Reliability and Emergency Reserve Trader (RERT) is a mechanism put in place when the available electricity supply in the market cannot meet forecast demand and the Australian Energy Market Operator (AEMO) puts out a call for additional electricity capacity to be made available to the grid. This capacity comes from sources that are not otherwise available to the market.

Where do the RERT reserves come from?

Typical sources are:

  • Load curtailment: Large energy users switching off or curtailing demand for electricity. Eg. Aluminium smelters pausing operations during a RERT event
  • Additional generation: Generation capacity that is not available to the market that can be brought online.  Eg. Batteries

RERT events since 2019 December:

To give an example of when the RERT might be used, the mechanism was activated for about a month from 30 December 2019 until 31 January 2020 as a result of the bushfires and summer heatwave. Since then, there have been other occasions where the RERT was utilised.

Below is a table containing RERT events from December 2019 onwards. 

Date Location
30 December 2019Victoria
4 January 2020NSW
23 January 2020NSW
31 January 2020NSW
31 January 2020Victoria
17 December 2020NSW
25 May 2021Queensland
1 February 2022Queensland
14 June 2022NSW
15 June 2022NSW
15 June 2022Queensland
17 June 2022NSW
5 July 2022Queensland
3 February 2023Queensland

When the RERT mechanism is activated, there is a cost involved in administering the process as well as compensating the large energy users and generators who participate in the emergency response.  This cost is passed on by AEMO to energy retailers who in turn pass it onto you, the customer.

AEMO – RERT charges on invoices

As a result of RERT events, many commercial and industrial electricity users have received electricity invoices with these additional costs factored into their bills.

Need help from an energy expert?

If you are having trouble understanding why you are being charged extra under the said scheme, one of our energy experts can help you understand the process involved in electricity invoices.

Or if you need just assistance finding an electricity and energy contract that fits your business needs and objectives, we’re the energy brokers in Australia that can guide you with that. Compare business energy plans here or call Leading Edge Energy today, obligation-free, on tel: 
1 300 852 770. You may also email us at info@leadingedgeenergy.com.au to speak with an energy management consultant about starting your journey to commercial energy bill savings.

Leading Edge Energy is proud to be a signatory of the National Customer Code for Energy Brokers, Consultants and Retailers.