• Electricity Market Review

    On 6 March 2014, the Minister for Energy launched the Electricity Market Review. The Review examines the structures of the electricity generation, wholesale and retail sectors within the South West Interconnected System in Western Australia and the incentives for industry participants to make efficient investments and minimise costs.

    The Electricity Market Review is being undertaken in two phases.

    • Phase 1 comprised an assessment of the strengths and weaknesses of the current industry structure, market institutions and regulatory arrangements and an examination of options for reform to better achieve the Electricity Market Review objectives.
    • Phase 2 will comprise two stages, firstly the detailed design of a set of selected reforms and implementation arrangements.

    The Review has three objectives:

    • Reducing costs of production and supply of electricity and electricity related services, without compromising safe and reliable supply
    • Reducing Government exposure to energy market risks, with a particular focus on having future generation built by the private sector without Government investment, underwriting or other financial support
    • Attracting to the electricity market private-sector participants that are of a scale and capitalisation sufficient to facilitate long-term stability and investment

    Phase 1 of the Review is now complete. Phase 1 identified an urgent need for industry and market reform in the electricity sector to address a problem of high and increasing costs of electricity services. Further information about Phase 1, including the Options Paper, can be found here.

    Phase 2 was launched on 24 March 2015 and has now commenced, with direction from government to undertake detailed design work on a selected set of reforms identified in Phase 1. Further information about Phase 2 can be found here.

    Last reviewed: 27 April 2017