- In monitoring the effectiveness of the electricity market, the Authority aims to develop arrangements to permit early understanding of market behaviour and assess the effectiveness of the market.
- With responsibility for assessing the effectiveness of both market rules and procedure change processes, the Authority is developing methods for undertaking such assessments.
- Similarly, processes will need to be developed for assessing the effectiveness of the Independent Market Operator and Western Power’s System Management in carrying out their functions under the Electricity Industry (Wholesale Electricity Market) Regulations 2004 and the Wholesale Electricity Market rules and market procedures.
- Other planned achievements include the development of processes for the approval of the Independent Market Operator’s and System Management’s allowable revenue and the assessment of values for the maximum reserve capacity price or one or more energy price limits applicable under the electricity wholesale market.
Planned Achievements
Industry Policy and Electricity Division
Following the commencement of the Wholesale Electricity Market, the Authority expects to work closely with the Independent Market Operator to understand the practical dynamics of the new market. To this end, the Authority is developing a Memorandum of Understanding with the Independent Market Operator in recognition for the need for mutual cooperation.
The Authority anticipates that the monitoring of the Wholesale Electricity Market will involve a significant workload. The primary challenge will be to quickly understand how participants in the market behave, as the structure of the Western Australian market differs significantly from that of the national electricity market which operates in all other Australian jurisdictions.
Particular planned achievements in respect of the Wholesale Electricity Market include the following:
The Authority anticipates finalising the approval of the Western Power’s proposed access arrangement and technical rules around midway through the next financial year. This approval will mark the commencement of monitoring processes under the electricity access code and the development of processes for assessing proposed major augmentations to the network.
The Authority will also conclude its approval of metrology procedures (which deal with the technical characteristics of measuring electricity) and mandatory link criteria (which deal with the types of meters including specific communication facilities) for Western Power and Horizon Power in the early part of the 2006–07 year.