Wholesale Electricity Market Rules renamed Electricity System and Market Rules 

On 6 February 2025, stage one of the Electricity Industry Amendment (Distributed Energy Resources) Act 2024 (DER Act) came into effect. 

The DER Act introduced three key changes to the Electricity Industry Act 2004:

1. introducing an overarching objective for the electricity sector, known as the State Electricity Objective;
2. renaming the Wholesale Electricity Market (WEM) Rules to the Electricity System and Market Rules (ESM Rules) and expanding their scope to address matters currently dealt with under other regulatory instruments; and
3. expanding the scope of the ESM Rules to address new subject matter, particularly in relation to the distribution network and the integration of distributed energy resources.

The Minister for Energy has approved the Electricity System and Market Amendment (Tranche 8) Rules 2025. These Amending Rules reflect the updated name of the ESM Rules and replace references to the Wholesale Market Objectives with references to the State Electricity Objective. The notice of the amendments was published in the Government Gazette on 3 June 2025.

Initially, the ESM Rules will only contain those matters currently included in the WEM Rules. However, over time, the ESM Rules will evolve to include content addressed in:

• the Electricity Networks Access Code 2004;
• the Electricity Industry (Network Quality and Reliability of Supply) Code 2005;
• the Electricity Industry (Metering) Code 2012; and
• Western Power’s Technical Rules.

The process to incorporate these regulatory instruments into the ESM Rules will include:

• a comprehensive review of the provisions of each to identify and address any gaps, inconsistencies or duplications that may exist in the consolidated framework; and
• stakeholder consultation on policy and drafting changes.

The objective of this reform is to build greater resilience and flexibility in the energy sector by developing a consolidated and future focused framework that works to deliver outcomes that protect and advance the interests of energy consumers.

Energy Policy WA will provide further information on the process for consolidation. Stay up to date with the latest details by subscribing to our mailing list.