Energy regulator takes court action against AGL
The Australian Energy Regulator has launched court action against AGL Energy for allegedly failing to have available crucial grid stability services from its coal power generators in Victoria and NSW.
The two AGL subsidiaries concerned have admitted to the alleged contraventions of the National Electricity Rules and intend to make submissions to the court for relief, the AER said.
The alleged breaches include behaviour at AGL’s Bayswater coal power station in Victoria Eamon Gallagher
The alleged breaches relate to the non-compliance to instructions given to AGL by the Australian Energy Market Operator to have available back-up services to the grid that it is paid for. The AER says AGL’s generators did not ensure that they were at all times able to comply with their commitments to provide frequency services, which are critical to the keeping the lights on.
The action is further evidence of the AER’s ramp-up of compliance and monitoring in the wholesale and retail markets. Early this week it fined EnergyAustralia and Incitec Pivot a total of more than $630,000 for alleged breaches of wholesale gas rules.
The latest charges related to the period between September 2018 and August 2020, in connection with two generating units at the Bayswater plant in NSW, and to between December 2019 and May 2020 for two units at the Loy Yang A station in Victoria.
“Electricity generators must do what they say they will do if we are to keep the lights on through the market’s transition to variable renewable generation,” AER board member Justin Oliver said in a statement.
“Generators receive payment from AEMO to be on standby to provide the FCAS [frequency control ancillary services] they have offered. We expect them to ensure that they
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