- Operational and market functions in the WA electricity industry to be transferred to the Australian Energy Market Operator
- Reform is focused on reducing the high prices for electricity in WA
Energy Minister Mike Nahan today announced the transfer of the system management and operation of the wholesale electricity market in the South-West of Western Australia to the Australian Energy Market Operator (AEMO).
AEMO will be responsible for the administration of the Gas Bulletin Board and Gas Statement of Opportunities. It will also assume the function of the retail market operator when the State Government introduces competition in electricity services for small businesses and households within the next few years.
To date these functions have been undertaken by Western Power and the Independent Market Operator (IMO).
"It no longer makes sense to have these functions spread across separate entities. An integrated approach will bring financial and operational efficiencies to our energy sector over the coming years," Dr Nahan said.
The Minister said the transfer was part of the Liberal National Government's efforts to drive efficiencies in the energy sector and limit future electricity price increases for households and businesses, and marked an important milestone in the Government's electricity reform program.
"The appointment of a single system and market operator will establish a strong foundation for the delivery of the remainder of the Government's electricity reform program and the development of a more efficient energy sector in the State," Dr Nahan said.
WA will maintain its own wholesale electricity market arrangements, rather than adopting the arrangements of the National Electricity Market, which operates in the Eastern States.
The IMO will temporarily maintain the function of administering and determining changes to the regulatory framework governing the operation of the State's wholesale electricity market. This function will be transferred to a Western Australian government entity, which is yet to be determined.
Dr Nahan said he was pleased with AEMO's commitment to having a physical presence in WA and maintaining both a corporate office and an electricity system control room in the State.
"I would like to thank the IMO board and chief executive officer, Allan Dawson, for his seven years of service and contribution to the energy sector in WA," he said.
Fact File
- Electricity system management is the real-time operation of the electricity power system, matching the output of power stations to electricity demand
- Electricity market operations involve ensuring there is sufficient power station capacity in the power system, providing a platform for wholesale trade, facilitating the transfer of customers between retailers and ensuring usage is correctly metered and accounted for
- AEMO was formed in 2009 to operate gas and electricity systems and markets. It is majority owned by the Australian, State and Territory governments with energy industry participants also having an ownership interest
- For information on the Electricity Market Review, visit https://www.finance.wa.gov.au/
Minister's office - 6552 5700
