Each year, the ERA prepares a report for the Minister for Energy on how effectively the Wholesale Electricity Market is meeting its objectives of: secure and reliable supply of electricity, enabling competition and minimising the long-term costs to consumers. The report is designed to highlight important events and trends during the year to assist in monitoring and facilitating market performance.
As part of each review, the ERA seeks feedback from stakeholders through an issues paper. The feedback we receive is considered as we prepare our report.
In addition to the annual reviews, the ERA also undertakes a triennial review to assess the extent to which the Wholesale Electricity Market objectives are being achieved. These reports are delivered to the Minister for Energy to table in Parliament. Once that occurs, we make the report available on our website after removing any commercially sensitive information.
2018/19 review of electricity market effectiveness
The ERA has completed its review of the Wholesale Electricity Market for 2018/19. The WEM objectives can be summarised as promoting safe and reliable electricity supply, encouraging competition among generators and retailers, avoiding discrimination against any energy options and technologies, minimising long-term costs to consumers, and managing electricity demand. Over the review period of July 2018 to December 2019, the ERA has found that the WEM is meeting some, but not all, of these objectives under the Electricity Industry Act 2004.
On 7 November 2019, we released an issues paper seeking comment from interested parties. The consultation period closed on Monday, 16 December 2019. The ERA received seven submissions, one submission was confidential and has not been made public. Stakeholder comments informed the ERA’s review.
The report was delivered to the Minister for Energy on 2 September 2020.