Cost Allocation Review – WEM Amending Rules Exposure Draft

Public notice
Energy Policy WA has released an Exposure Draft of the Cost Allocation Review Wholesale Electricity Market Amending Rules
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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 (CAR) 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.

Energy Policy WA has developed an Exposure Draft on the WEM Amending Rules to implement the CAR Review outcomes outlined in the CAR Information Paper 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.

The WEM Amending Rules to implement the Review Outcomes are due for commencement in October 2025 in conjunction with the Amending Rules to implement five-minute settlement in the WEM.

Energy Policy WA requests stakeholder feedback on this Exposure Draft by 5:00 PM (AWST) on 28 November 2023.

Feedback can be sent to energymarkets@demirs.wa.gov.au 

Late submissions may not be considered. The CAR WEM Amending Rules Exposure Draft can be found on our website.

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