The Economic Regulation Authority must annually determine the Benchmark Reserve Capacity Prices (BRCP) according to a WEM Procedure.
The ERA must review the WEM Procedure outlining the method to determine the BRCP within one year of the Coordinator of Energy’s determination of Benchmark Capacity Providers, and within five years of the ERA’s previous review of the WEM Procedure. The ERA previously reviewed the WEM Procedure in 2020.
Any amendments to the WEM Procedure must be consistent with the WEM objectives, the WEM Rules, the Electricity Industry Act 2004 and the Electricity Industry (Wholesale Electricity Market) Regulations 2004. Prior to amending a WEM Procedure, the ERA must publish a procedure change proposal for stakeholder feedback.
On 23 November 2023, the Market Advisory Committee (MAC) established a working group to advise the ERA on its upcoming review of the WEM Procedure. This working group was comprised of industry, consumer and government representatives.
On 18 December 2023, the Coordinator of Energy published its determination of Benchmark Capacity Providers.
On 5 April 2024, the ERA published a procedure change proposal for stakeholder feedback by 6 May 2024. The ERA received seven submissions from stakeholders.
On 26 July 2024, the ERA published the procedure change report and WEM Procedure, concluding the procedure change process as required by WEM Rule 2.10.
The updated WEM Procedure took effect on 1 August 2024 and is also available on the WEM Procedures page.