Regulatory framework

Western Australia’s energy industry plays a major role in driving the State’s economic development and contributing to the community’s high standard of living.
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This section provides an overview of the energy industry, outlining the regulatory instruments, high level operations and key players.

Legislation and codes

The Minister for Energy is responsible for administering the following legislation in Western Australia. The Coordinator of Energy supports the Minister in this role. 

Industry codes

The following Codes were established under the Electricity Industry Act 2004 and have the force of law in Western Australia. 

Western Australia’s independent economic regulator, the Economic Regulation Authority, has established the following gas industry-related Codes under the Energy Coordination Act 2004:

The Coordinator of Energy provides policy advice to the Minister for Energy in relation to the operation and amendment of electricity and gas codes in Western Australia.

Markets, regulation and complaints

The market, regulation and complaint processes in Western Australia’s energy industry are governed by a number of organisations, including the following:

Market operators

  • Australian Energy Market Operator (AEMO) – responsible for operating the Wholesale Electricity Market and power system within the South West Interconnected Network and the retail gas market in Western Australia.
  • EnergySafety (technical regulator) – responsible for the licensing of electrical and gas workers and contractors

Regulator

  • Economic Regulation Authority – the independent economic regulator for Western Australia, established under the Economic Regulation Authority Act 2003, regulates monopoly aspects of the gas, electricity and rail industries and licenses providers of gas, electricity and water services

Complaints and appeals

  • Energy Ombudsman – the Energy Ombudsman Scheme was established in 2005 under the Electricity Industry (Ombudsman Scheme) Regulations 2005. The Energy Ombudsman’s primary function is to investigate and resolve complaints from residential and small business customers about their electricity or gas providers
  • Western Australian Electricity Review Board – the Board, established under the Energy Arbitration and Review Act 1998, hears appeals on electricity matters against various regulatory decisions relating to licensing, access, coverage and the Wholesale Electricity Market. It also hears appeals on gas access matters arising under the old access regime, the Gas Pipelines Access (Western Australia) Act 1998
  • Western Australian Energy Disputes Arbitrator – established under the Energy Arbitration and Review Act 1998, the Arbitrator’s functions include resolving disputes in relation to parties seeking access to regulated gas pipelines and electricity networks
  • Australian Competition Tribunal – performs appeal functions under the National Gas Law as applied in Western Australia

Licensing and exemptions

ANNOUNCEMENT: The Minister for Energy has asked Energy Policy WA to undertake a review of the regulatory framework for retail electricity licensing and exemption activities.

Given the intended scope of the review, the Minister for Energy has determined that retail licence exemption applications for solar power purchase agreements currently under consideration will not be processed further and no additional solar power purchase agreement licence exemption applications will be accepted.

Further information can be found here.

Economic Regulation Authority

The Economic Regulation Authority, is responsible for issuing the following licences in Western Australia: electricity generation, transmission, distribution, retail and integrated regional licences, and also gas trading and distribution licences. Electricity licences are issued in accordance with the Electricity Industry Act 2004 and gas licences in accordance with the Energy Coordination Act 1994.

Licence exemptions

The Governor of Western Australia may exempt any person or class of persons from requiring an electricity licence under the Electricity Industry Act 2004 or a gas licence under the Energy Coordination Act 1994. Energy Policy WA administers the exemptions process and considers licence exemptions on its own initiative and on request.

Typically, an exemption may apply where generation, transmission or distribution systems occur in isolation, particularly those that occur exclusively on or over an energy operator’s land.

Conditions apply to exempt persons who supply (on-sell) electricity to residential properties where a person who requires life support equipment resides.  Further information on these life support protections is available here.

Exemption process

Any person or organisation may make a submission to Energy Policy WA for a licence exemption. Licence exemptions under consideration will be made available for public comment on Energy Policy WA's website, unless otherwise agreed. Public comments received will also be published. Energy Policy WA will consider these comments and make a recommendation to the Minister for Energy on whether or not an exemption should be granted.

The Governor may grant an exemption on advice from the Minister for Energy.

Licence exemption orders

Licence exemption orders are published in the Government Gazette website.

Other licences

 

Contact

Energy Policy WA
Address:
Energy Policy WA
Level 1, 66 St Georges Terrace, Perth, WA 6000
Locked Bag 100
East Perth WA 6892
Telephone:
(08) 6551 4600
Email:
EPWA-info@dmirs.wa.gov.au