The Coordinator of Energy is conducting a Review of the MAC (Review) under clause 2.2D.1(h) of the WEM Rules.
Amendments to the Electricity Industry Act 2004 through the introduction of the Electricity Industry Amendment (Distributed Energy Resources) Bill 2023 will mean that the WEM Rules will be renamed the Electricity System and Market Rules (ESMR) to reflect their expanded range.
The ESMR will continue to govern the operation of the WEM and contain consolidated and future-focused rules governing the electricity system in Western Australia. Their scope will be expanded to address matters contained in:
the Electricity Networks Access Code 2004, made under Part 8 of the EI Act;
Western Power’s Technical Rules, made under Chapter 12 of the Access Code;
the Electricity Industry (Metering) Code 2012, made under Part 2 of the EI Act; and
the Electricity Industry (Network Quality and Reliability of Supply) Code 2005, made under Part 2 of the EI Act.
These instruments will be moved across to the WEM Rules over the coming years and, therefore, the content the MAC will be required to provide advice on will expand significantly and become more technically complex. The role, functions and composition of the MAC will need to evolve with the development of the energy market.
As a result, a review of the structure and operation of the MAC is required, to ensure that it remains able to perform its functions effectively and that it is fit for purpose to provide advice on the expanded ESMR, including on power system Security and Reliability related matters.
The Review of the MAC will assess whether the:
MAC is fit for purpose, and in particular, that it operates efficiently and provides balanced, timely and useful advice to the Coordinator;
MAC operates for the good of the WEM Objectives;
MAC members are participating in the interests of the stakeholder groups that they represent rather than on representing the specific interest of any organisation or person; and
The Review will also account for the expanded scope of the WEM Rules and the expanded range of subject matter that the MAC will be required to provide advice on.
Depending on the outcomes of the review, the Constitution and composition of the MAC, including the number and class of Market Participants may be amended. Further information on the MAC can be found here.
The Review is being undertaken in three stages:
Stage 1: Independent review and recommendations
Stage 2: Design proposals for revised MAC arrangements
Stage 3: WEM Amending Rules and MAC Constitution changes
The Review is supported by an independent consultant, who is responsible for carry out the Stage 1 of the Review in consultation with MAC members, other Market Participants and other key stakeholders through surveys and one-to-one consultations.
ACIL Allen has been engaged by the Coordinator to undertake Stage 1 of the Review, and recommend any changes necessary.
ACIL Allen’s Consultation Paper was published 6 May 2024 and sets out the initial recommendation and observations on the Review.
Public submissions on the Consultation Paper close at 5:00pm (AWST) on 30 May 2024.
