Divisional Operations – Key Deliverables and Achievements

Industry Policy Division

Objectives

Under the Wholesale Electricity Market Rules –

  • To monitor the effectiveness of the market.
  • To determine budgets for the Independent Market Operator and Western Power's System Management.
  • To approve price limits for reserve capacity and energy annually.

The Authority will acquire these responsibilities with the start of the Wholesale Electricity Market.

In addition to providing efficient and effective independent regulation and independent advice to Government, the Authority's mission includes promoting economically efficient outcomes in Western Australia through advancing the debate in economic regulation.

Key deliverables and achievements

What we set out to do…

In its 2004–05 Annual Report, the Authority committed to the following work:

  • Establish competencies to monitor the ongoing effectiveness of the Wholesale Electricity Market to be established on 1 July 2006.

The Authority also committed to pursuing its stated objective of advancing the debate in economic regulation.

What we achieved…

  • During the reporting year, the Authority has focused on acquiring the necessary human resources and identifying the relevant IT systems for it to perform its functions in the Wholesale Electricity Market. The Authority also participated as an observer in the work undertaken by the Market Readiness Committee, which was established to advise the Minister for Energy and the Independent Market Operator on market design.
  • The Authority made several submissions to relevant regulatory policy bodies on matters relating to the debate in economic regulation. This is consistent with the view that regulators can make a valuable contribution to the regulatory debate based on the practical experience of administering regulatory regimes.

More specifically, the following key achievements were accomplished in the area of industry policy:

  • On 29 July 2005, the Authority provided a submission to the Senate Economics Legislation Committee Inquiry into the provisions of the Trade Practices Amendment (National Access Regime) Bill 2005.
  • The Authority provided a submission to the Australian Energy Market Commission on 20 March 2006 regarding the Draft National Electricity Amendment (Economic Regulation of Transmission Services) Rule 2006 review.
  • On 7 April 2006, the Authority provided a submission to the Ministerial Council on Energy Expert Panel Draft Report on the Review of Revenue and Network Pricing Across the Energy Market.

In addition, the following key achievement was accomplished in the area of Wholesale Electricity Market monitoring:

  • A revised Maximum Reserve Capacity Price proposed by the Independent Market Operator for the 2008–09 capacity year was approved by the Authority on 23 January 2006.