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Wholesale Electricity Market

The Wholesale Electricity Market in Western Australia, located in the South West interconnected system commenced in September 2006. It consists of two key components, a capacity market where electricity providers are paid for the capacity they make available, and a wholesale market where market participants interact to supply and purchase electricity.

The Market allows for competition between generators and retailers by ensuring mechanisms are in place that are aimed at ensuring the most efficient and least cost generators are used to supply electricity, keeping prices as low as practicable.

Customers benefit from having a mechanism that ensures they can use electricity when they need it and the electricity is delivered at the minimum practicable cost.

The Market is governed by the Wholesale Electricity Market Rules that guide the operation of the Market, including the trading and dispatch of energy, the Reserve Capacity Mechanism and settlement.

The operator of the Market is the Australian Energy Market Operator (AEMO). The operation of the Market is governed by the Wholesale Electricity Market Rules. The Market Rules cover the roles and functions of the AEMO and guide the operation of the Wholesale Electricity Market.

The ERA’s role includes:

  • monitoring market participant behavior
  • undertaking approvals requested by the AEMO
  • undertaking reviews required by the Market Rules
  • providing an annual report to the Minister for Energy on the effectiveness of the WEM and
  • compliance and enforcement.
Page last updated: 21 Jun 2018