Cost Allocation Review Information Paper

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Energy Policy WA has published a Cost Allocation Review Information Paper
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Change of name from WEM Rules to ESM Rules

Since this web page was published, the Wholesale Electricity Market (WEM) Rules have been renamed the Electricity System and Market (ESM) Rules, and the Electricity Industry (Wholesale Electricity Market) Regulations 2004 (WEM Regulations) have been renamed the Electricity Industry (Electricity System and Market) Regulations 2004 (ESM Regulations). Changes have not been made to this web page to reflect this updated name.

The Coordinator of Energy, in consultation with the Market Advisory Committee, has reviewed the allocation of Market Fees and Essential System Services (ESS) costs to Market Participants. This review was conducted under clause 2.2D.1(h) of the Wholesale Electricity Market (WEM) Rules. 

The purpose of the Cost Allocation Review was to make changes to the methods for allocating Market Fees and ESS costs to align them with the causer-pays principle, to the extent practicable and efficient. 

This paper presents the outcomes from the Cost Allocation Review for the allocation of: 

  • Market Fees;
  • Regulation Raise and Lower service costs;
  • Contingency Reserve Raise service costs;
  • Contingency Reserve Lower service costs; and
  • Other Essential Systems Services costs. 

A copy of the Cost Allocation Review Information Paper can be found on the Cost Allocation Review Page

Energy Policy WA will develop and consult on the WEM Amending Rules to give effect to the review outcomes for commencement in October 2025.

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