FERM Market Liquidity Obligation Consultation
This is your opportunity to inform South Australia’s implementation of the National Energy Market (NEM) market making obligation (MMO) under the Firm Energy Reliability Mechanism (FERM).
The MMO framework, which adopts the national approach developed by the NEM review, will be implemented in mid-2026 - but there are design elements that are still to be finalised.
This consultation is an opportunity to provide specific feedback to inform these remaining elements of the MMO framework ahead of implementation.
Background
With South Australia at the forefront of the national energy transition to low emission sources, it is vital to ensure that electricity financial market structures support wider system advances.
The NEM review has recommended that South Australia lead the introduction of a MMO to address declining electricity contract market liquidity, and improve transparency, accessibility and price discovery of hedging products, with MMO products being determined by an industry-led co-design process.
The MMO will initially be empowered through the National (South Australia) (Firm Energy Reliability and Orderly Exit Management) Regulations 2025 (FERM Regulations), before transitioning to a national approach in 2027 following required legislative amendments. It will impose minimum daily contracting requirements on long duration firm capacity providers with obligations outlined in the FERM Minister’s guidelines.
The MMO will be implemented as the FERM market liquidity obligation (MLO).
Get involved
Find out more
More information on the upcoming MMO framework, and the design elements that are still to be finalised, is available in the Consultation Paper.
Join the conversation
DEM will host an online industry webinar on Tuesday 3 February 2026 from 9:30 am to 10:30 am (ACDT). Email dem.ferm@sa.gov.au to register your interest to participate in the online session.
Have your say
You can have your say on the FERM MMO by:
- Downloading and providing your feedback via the Consultation Response Template
- Emailing a submission to dem.ferm@sa.gov.au with the subject line:
'FERM Market Liquidity Obligation consultation'
What are the next steps?
Your submissions will help shape the MMO framework to be adopted in South Australia.
Submissions will be made available on the DEM website
