The Wholesale Electricity Market Rules and the Gas Services Information Rules set out the requirement that the Australian Energy Market Operator’s (AEMO) allowable revenue and forecast capital expenditure must consist only of forecast costs that are approved by the ERA. Once approved, AEMO can recover approved costs from market participants through market fees. These costs are eventually passed through to consumers.
2022-2025 Allowable Revenue and Forecast Capital Expenditure
On 29 October 2021, the ERA published a guideline to inform AEMO funding proposals under WEM Rules and GSI Rules.
AEMO’s funding is approved by the ERA for a three-year allowable revenue period. However, the WEM and GSI Rules also allow AEMO to make additional funding proposals within an allowable revenue period. The guideline is intended to be used for both the three-year funding proposals and for any additional in-period funding proposals.
On 8 February 2022, the ERA published an issues paper seeking comment from interested parties on the proposal from the Australian Energy Market Operator (AEMO) for allowable revenue of $156.2 million and forecast capital expenditure of $69.4 million for the period 1 July 2022 to 30 June 2025. The consultation period closed on Tuesday 8 March 2022. The ERA received six submissions in response to the issues paper which are available below.
On 31 March 2022, the ERA published its draft determination seeking comment from interested parties on approving an allowable revenue of $135.9 million and a forecast capital expenditure of $52 million. The consultation period closed on Thursday 28 April 2022. Submissions received are available below.
On 31 May 2022, the ERA published its determination, which approved $142.3 million of allowable revenue and $61.5 million in forecast capital expenditure for AEMO to perform its functions and provide services to the Wholesale Electricity Market in Western Australia for the next three years.