On 30 August 2011, the Federal Court dismissed the AER's case in Australian Energy Regulator v Stanwell Corporation Limited [2011] FCA 991 which concerned alleged breaches by Queensland generator Stanwell Corporation Limited of the National Electricity Rules.

The AER instituted proceedings against Stanwell on 28 July 2009 alleging that Stanwell had breached the good faith provision of the National Electricity Rules.

Generators like Stanwell are required to offer to supply energy into the National Electricity Market in good faith. The Australian Energy Market Operator accepts offers from generators and dispatches those generators in order of least cost to meet demand.

Rebidding allows generators to alter these offers in response to changes in circumstances. The good faith provision of the National Electricity Rules requires a generator to honour its offer to the market unless there is a change in the material conditions upon which the offer was based.

Rebids that are not made in good faith can adversely affect the accuracy of information upon which market participants rely.

AER chairman Andrew Reeves said that "the Australian Energy Regulator is disappointed by today's Federal Court decision to dismiss the AER's case."

For a detailed overview of the Court's decision, see Gilbert +Tobin publication "Court finds that Stanwell did not breach obligation to rebid in good faith", by Catherine Earles and Jennifer Barron.