Penalty for Queensland generator over inability to supply frequency control services

Penalty for Queensland generator over inability to supply frequency control services

AU Energy Compliance
Frequency control ancillary services (FCAS) is used by AEMO to maintain the frequency of the system within tolerances and around 50 cycles per second. FCAS is a mechanism for ensuring balance within the market which can be variable and volatile. FCAS providers are especially important as the uptake of renewable energy within the NEM continues. On 22 February 2021, the AER announced that CS Energy has paid $200,000 in penalties for allegedly failing to ensure that it could provide FCAS that it had already offered to the market. CS Energy has also repaid $1.13 million to AEMO, which it had received as payment to provide the services. In a comment on the incident, AER Chair Clare Savage said: “Inaccurate information about FCAS offers undermines AEMO’s ability to manage frequency deviations…
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Substantial increases in penalties for non-compliance in the energy sector

Substantial increases in penalties for non-compliance in the energy sector

AU Energy Compliance
Summary: As a result of recent reforms discussed below, non-compliant energy businesses in NECF now face penalties of up to 10 percent of their annual turnover or $10,000,000. Consequently, all energy businesses should seriously re-examine their compliance programs and regulatory controls. On 20 March 2020 Energy Ministers in what was then the COAG Energy Council agreed to implement changes to the National Energy Laws (national Electricity Law, National Gas Law, and National Energy Retail Laws) to provide for substantial increases to the civil penalties for non-compliance by energy businesses. The proposed changes were implemented by the Statutes Amendment (National Energy Laws) (Penalties and Enforcement) Act 2020 (Act), which was given Royal Assent on 22 October 2020 and the National Energy Regulations, came into force by Proclamation on 29 Jan 2021. The new penalty…
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