Energy Action : AEMO takes on role of energy market operator in Western Australia

The Australian Energy Market Operator is set to undertake the role of independent energy market operator and independent power system operator in Western Australia.

The WA Energy Minister Mike Nahan recently announced the transfer of the system management and operation of the wholesale electricity market in the South-West of Western Australia to the Australian Energy Market Operator (AEMO).

AEMO will be responsible for the administration of the Gas Bulletin Board and Gas Statement of Opportunities. It will also assume the function of the retail market operator when the State Government introduces competition in electricity services for small businesses and households within the next few years. To date these functions have been undertaken by Western Power and the Independent Market Operator (IMO).

The Minister said that the appointment of a single system and market operator will establish a strong foundation for the delivery of the remainder of the Government's electricity reform program and the development of a more efficient energy sector in the State.

AEMO's Managing Director and CEO, Matt Zema said 'AEMO believes that there are a number of benefits to be realised by energy market consumers and participants with the potential for common interfaces to be available to participants and investors in the Wholesale Electricity Market (WEM) and the National Electricity Market (NEM)'.

AEMO has stated its strategy is to continue to operate Australian energy markets reliably and securely and said they are committed to delivering the same level of rigor and robustness to the WEM under the WEM rules.

WA will maintain its own wholesale electricity market arrangements, rather than adopting the arrangements of the National Electricity Market, which operates in the Eastern States.

The IMO will temporarily maintain the function of administering and determining changes to the regulatory framework governing the operation of the State's wholesale electricity market. This function will be transferred to a Western Australian government entity, which is yet to be determined.