In 2011 we reviewed the first five years of the Wholesale Electricity Market (WEM) in operation. We noted that the volume of trading in the Short Term Energy Market (STEM) is at its highest level since market commencement and average STEM prices are at their lowest levels. The price for capacity has fluctuated over time, but has recently been reduced by one third. There has also been greater competition in the market, particularly in the generation sector but was concerned about the possible re-merger of Verve Energy and Synergy, climate change policy, demand side management with Western Power, the effectiveness of the outage planning process and the rule change process and the market for bilateral contracts and their influences on market outcomes.
Our discussion paper was published in October 2011 and we received eight submissions from the public. Our report was delivered to the Minister for Energy and published on our website in May 2012.