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In January 2003, the Government embarked on an unprecedented program of reform to the State’s electricity industry.  The Government’s vision was to create a competitive electricity market to encourage private sector investment, improve reliability of supply and place downward pressure on prices.

The key components of this program included:           

  • the restructure of Western Power into four Government owned entities;

  • the establishment of a wholesale electricity market;

  • the development of a strong and independent regulatory framework including measures to protect smaller customers in the new market;

  • reduction  in the contestability threshold to 50 megawatt hours; and

  • the facilitation of sustainable energy options.


The Office of Energy through the Electricity Reform Implementation Unit (ERIU) managed the electricity reform process.   ERIU was disbanded in April 2006 following disaggregation of the Western Power Corporation.


Further details about the key issues addressed throughout the reform process can be accessed via the links below.

For Consumers

Electricity reform is essential to deliver Western Australians better prices, improved service standards and wider consumer choice. Read more>>

For Industry

The State Government has made significant progress in its plan to overhaul the State’s electricity market.  The overall aim is to deliver cheaper prices by introducing competition into the State’s monopolistic electricity industry. Read more >>

For the Regions

The State Government understands that a safe, reliable, efficient and affordable electricity supply is an essential part of life for regional Western Australia.  Electricity consumers in the regions are well protected under the electricity reform agenda and are set to benefit from better service. Read more >>

For Small Business

Electricity reform aimed to deliver downward pressure on prices by introducing competition into the State’s monopolistic electricity industry. Read more >>

For Sustainable Energy

The State Government’s electricity reform plan is enabling Western Australia to properly harness its renewable energy resources to develop a world class sustainable energy industry. Read more >>

The Vesting Arrangements

The Vesting Arrangements are a transitional mechanism supporting the development of a competitive electricity market in Western Australia.  The Vesting Arrangements will provide for the initial wholesale supply of energy and Capacity Credits between Verve Energy and Synergy.  These arrangements commenced upon the disaggregation of Western Power Corporation on 1 April 2006. Read more >>