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Electricity Market Review Discussion paper

The ERA made a submission to the Electricity Market Review (EMR) commissioned by the Minister for Energy.

We welcome the review, particularly as it covers issues of concern to the ERA that have been raised since 2008 in its annual Wholesale Electricity Market reports to the Minister for Energy.

We are pleased to see the general focus of the review is on identifying changes required to increase competition- in particular in relation to restructuring Synergy. We consider the focus of reform should be on restructuring Synergy and dealing with the known issues with the existing market design before considering fundamental changes to market design. It is possible that a more competitive industry structure, along with some necessary adjustments to the current market design, would be sufficient to achieve the objectives of the EMR, thus saving significant costs associated with undertaking fundamental redesign of the market.

We consider the most pressing problems in establishing competitive electricity markets to be:

  • industry structure including government ownership and lack of competition
  • market governance (including government's conflict as policy setter and owner of the major energy corporations)
  • the Reserve Capacity Mechanism and
  • constrained network access.

We trust our submission assists the Electricity Market Review Panel in promoting a more efficient and customer focused WA economy.

Electricity Market Review Reserve Capacity Mechanism