The value of the Ancillary Service Cost_LR parameter covers the payment to a market generator for the costs of providing the Load Rejection Reserve Service and System Restart Service.
The “L” component in the "Cost_LR" parameter relates to Load Rejection Service. This ancillary service is used to maintain power system reliability in the event of an unforeseen reduction in customer demand.
The “R” component in the “Cost_LR” parameter relates to System Restart Service. This ancillary service is used to restore power to the electricity system in the event of a localised or system-wide blackout.
The ERA must determine the values for the Cost _LR parameter for each review period by 31 March of the year in which the review period commences.
Updated information is now available on the Spinning reserve (margin peak and off peak), load rejection reserve and system restart (cost_LR) webpage.