A core element of the government's electricity reform agenda is the establishment of a Wholesale Electricity Market (WEM) for the South West Interconnected System (SWIS). Energy trading commenced in the Wholesale Electricity Market on 21 September 2006. The market will provide a mechanism for industry participants to trade in electricity.
An overview of the Wholesale Electricity Market is available on the Independent Market Operator (IMO) website.
Annual Report on the Wholesale Electricity Market
New competition in energy trading is benefiting Western Australian consumers and the entire energy industry, according to a report released in March 2008.
The Annual Wholesale Electricity Market Report, compiled by the Economic Regulation Authority, represents another significant milestone in the State Government’s successful electricity reform program.
According to the report, the Wholesale Electricity Market is providing an efficient mechanism for energy industry participants to trade electricity within the South West Interconnected System.
The successful operation of the Wholesale Electricity Market since 21 September 2006, together with other reform measures like the disaggregation of Western Power Corporation, is bringing tangible benefits in increasing the competitiveness of the electricity industry in this State.
The report highlights that a number of new participants had entered the market since 2006. This had led to the construction of several new power stations and plans for many more. These include:
This mix of renewable, gas, and coal plant represents good diversity, providing for continued security of ongoing fuel supplies. Increased market participation by new generation facilities is also bringing environmental benefits, through generation plants with low or zero greenhouse gas emissions generation. To provide for the creation of separate retail and generation entities (Synergy and Verve Energy) and the commencement of the new Wholesale Electricity Market, the Minister for Energy issued the following Ministerial Directions on 21 March 2006:
The results achieved are due to the hard work put into the design of the Wholesale Electricity Market and the Market Rules, which were carefully developed by the State Government and the electricity industry.
Click on the link to the ERA website to read the Annual Wholesale Electricity Market Report.
Formal WEM Rule Change Process
The formal Rule change process under the Wholesale Electricity Market Rules (the “Rules”) commenced on 15 December 2006. Details of the final status of the Rule change proposals received by Office of Energy whilst it was administering the Rule changes process on behalf of the Minister for Energy are available on the subpage linked below.
Read about the Formal WEM Rule Change Process >>
Electricity Capacity Cap
On 7 April 2005 the then Minister for Energy issued a Ministerial Direction to Western Power, under section 66 of the Electricity Corporation Act 1994, requiring it to limit its generation capacity to 3,000 MW to promote competition and encourage increased private sector investment in the new electricity market.
Ministerial Direction - Electricity Retail Corporation
Ministerial Direction - Electricity Generation Corporation
You will need Adobe Reader to view these files. Download it for free at http://www.adobe.com.au/products/acrobat/readstep2.html.
