Major reforms to energy and ancillary services in the wholesale electricity market to address inefficiencies and ensure ongoing security of the system
The reforms to deliver savings of up to $370 million
The Liberal National Government today announced major reforms to the wholesale electricity market in the south-west of Western Australia, which will deliver savings of up to $370 million.
Energy Minister Mike Nahan said the reforms would provide greater accountability and more flexibility for power station owners and electricity retailers in buying and selling energy, ensuring electricity was produced and delivered at the lowest possible cost.
"These reforms will allow for the efficient, transparent and lowest cost use of power stations, while maintaining the security and reliability of the electricity system," Dr Nahan said.
Under new arrangements, which will come into effect on July 1, 2018, the Australian Energy Market Operator will use sophisticated systems to administer the wholesale electricity market and operate the electricity system.
These systems will provide instructions to generators supplying electricity and the energy services, enhancing the safe, secure and reliable delivery of electricity services.
The Minister said the reforms would also allow the Australian Energy Market Operator to draw on computer systems and expertise developed in the National Electricity Market, with modifications to suit the particular circumstances and requirements of WA.
"This will align operation of the Western Australian wholesale electricity market with best practice in competitive electricity markets, while also reducing implementation costs for the reforms," he said.
"These important reforms form part of the State Government's Electricity Market Review, which seeks to increase the efficiency and effectiveness of the electricity market with the aim of keeping electricity prices as low as possible."
Fact File
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