The AER issued the infringement notices because it had reason to believe that ERM Power failed to follow dispatch instructions from the Australian Energy Market Operator for one of the generating units at Oakey Power Station on both 23 March and 21 September 2015.

The notices were issued following a detailed review by the AER into ERM Power’s compliance with dispatch instructions at Oakey over a nine month period in 2015.

The review identified numerous instances of potential non-compliance by ERM Power with AEMO dispatch instructions when operating its Oakey generators during this period.

“Failures to follow AEMO dispatch instructions can have serious implications for security of the power system,” AER Chair Paula Conboy said.

“In this instance we considered that it was appropriate to issue infringement notices for the two most serious instances identified by the AER’s review.

“ERM Power has fully cooperated with the AER and undertaken a number of actions in response to the AER’s compliance review, including conducting compliance training and implementing new systems to improve Oakey’s ability to respond to dispatch instructions. These actions and cooperation were taken into account in determining the AER’s enforcement response.”

The AER can issue an infringement notice where it has reason to believe a business has contravened a civil penalty provision of the National Electricity Law or National Electricity Rules. The payment of a penalty specified in an infringement notice is not an admission of a breach or an admission of liability.