Glossary

Access Arrangement
An access arrangement sets out terms and conditions (including prices) for access by third parties to regulated infrastructure. The Economic Regulation Authority is responsible for the assessment and approval of access arrangements under the Gas Pipelines Access (Western Australia) Act 1998 and the Electricity Networks Access Code 2004.
Allocation
Allocation refers to the process by which capacity available in a pipeline is assigned to parties in the event that requests for gas exceed the available capacity.
Balancing
Balancing refers to the process of matching receipts and deliveries of gas by adding or withdrawing gas from a pipeline (i.e. if a pipeline delivers a shortfall of gas, another pipeline supplies the shortfall in order to meet the capacity demand).
COAG
Council of Australian Governments
DBNGP
Dampier to Bunbury Natural Gas Pipeline
Independent Market Operator
The Independent Market Operator (IMO) is an independent statutory corporation established on 1 December 2004 pursuant to the Electricity Industry (Independent Market Operator) Regulations 2004. The IMO is responsible for the administration and monitoring of the Western Australian Wholesale Electricity Market.
MOU
Memorandum of Understanding. An MOU is an informal agreement between agencies, whereby the participating agencies agree to provide each other with mutual assistance in relation to the exchange of information, appropriate referral of matters and cooperation in compliance, education and enforcement activities.
Retail Energy Market Company
The Retail Energy Market Company is the Retail Market Administrator for the contestable gas markets of Western Australia and South Australia. It began operation in Western Australia on 31 May 2004.
Retail Market Scheme
A gas retailer must be a member of an approved Retail Market Scheme (RMS) if it wishes to sell gas to customers through a gas distribution system in Western Australia and there is at least one other company selling gas through that distribution system. An RMS is a scheme that enables a Retail Market Administrator to manage the gas market. An RMS must cover the process for customer transfers, as well as the balancing, allocation, and reconciliation of the gas market. The Minister for Energy has approved an RMS that covers all of the Alinta Gas Networks distribution systems. The Retail Market Administrator for this RMS is the Retail Energy Market Company Limited.
Ring Fencing
Ring fencing means separating an infrastructure owner/operator’s functions and business of providing access to the infrastructure from its other functions and business.
System Management
System Management is a ring fenced unit of Western Power responsible for the operation of Western Power’s grid on the South West Interconnected System, including the dispatch of loads and generators.
WACC
See Weighted Average Cost of Capital.
Weighted Average Cost of Capital
The Weighted Average Cost of Capital is expressed as a percentage and represents the weighted average of the cost of debt and the cost of equity in relation to a covered gas pipeline, electricity network or railway line.
Wholesale Electricity Market
As part of the Western Australian Government’s electricity reform program, a new wholesale electricity market will be implemented in the South West Interconnected System from 21 September 2006. The wholesale market will enable the trade of electricity through bilateral contracts.
A Short Term Energy Market will complement the bilateral contract market by providing for an auction process through which buyers and sellers will be able to adjust their bilateral trading contracts.