EnergyAustralia has been fined $750,000 for alleged breaches of its obligations to provide frequency control ancillary services (FCAS), which help keep the electricity grid stable and prevent disruption of electricity supply.
The Australian Energy Regulator (AER) issued 10 infringement notices to EnergyAustralia, alleging that, on multiple occasions during 2023 and 2024, EnergyAustralia failed to ensure that four of the batteries it manages in NSW and Victoria could fulfil FCAS offers submitted to AEMO, or failed to ensure these four batteries complied with FCAS dispatch instructions from AEMO.
Related article: EnergyAustralia admits to breach over Solar Sharer delay
AER deputy chair Justin Oliver said the penalties sent a clear message that market participants must be able to deliver the services they offer.
“Frequency control ancillary services are a crucial part of the safety net that keeps the power system stable and secure, preventing blackouts and protecting electrical equipment from damage,” Oliver said.
“As batteries take on a greater role in the electricity system, operators must understand their operating limits, make accurate offers and comply with AEMO’s dispatch instructions. It is important that market participants regularly monitor their assets and systems to ensure they are operating correctly.
“Providers of frequency control ancillary services must be ready and able to deliver these services and meet their obligations when called upon, or face enforcement action.”
The alleged breaches came to light after AEMO requested frequency control data from market participants following the February 2024 Victorian storms.
EnergyAustralia subsequently self-reported the alleged breaches and worked constructively with the AER throughout its investigation. EnergyAustralia has also repaid AEMO the money it received to provide the services.
Related article: EnergyAustralia fined for alleged life support process failures
This is the AER’s fourth enforcement outcome relating to FCAS since 2019, and the first relating to EnergyAustralia.
