Wholesale Electricity Market
In order to supply electricity to your home or business, your retailer must purchase electricity from a generator either directly directly and/or, in the case of the South West Inconnected System, through the market. The Wholesale Electricity Market (WEM) covers wholesale electricity sales within the South West Interconnected System (SWIS) between sellers (generators and demand side management facilities) and buyers (retailers and large users).
The objectives of the WEM, as in the Electricity Industry Act 2004, are to:
- promote the economically efficient, safe and reliable production and supply of electricity and electricity related services in the SWIS
- encourage competition among generators and retailers in the SWIS, including by facilitating efficient entry of new competitors
- avoid discrimination in that market against particular energy options and technologies, including energy options and technologies such as those that make use of renewable resources or that reduce overall greenhouse gas emissions
- minimise the long-term cost of electricity supplied to customers from the SWIS
- encourage the taking of measures to manage the amount of electricity used and when it is used.
The WEM is run by the Independent Market Operator (IMO). For information on WEM structure, market rules and governance arrangements (including the Market Advisory Committee), visit the IMO website.
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Licenced electricity operators – the Economic Regulation Authority licences electricity operators in WA, including generators, distributors and retailers