• Wholesale Electricity Market

    To supply electricity to homes or businesses on the South West Interconnected System (SWIS), retailers must purchase electricity from a generator directly or indirectly through an electricity market. The Wholesale Electricity Market [external], facilitates wholesale electricity sales within the SWIS between sellers (generators and demand side management facilities) and buyers (retailers and large users).

    Wholesale Electricity Market objectives

    The objectives of the Wholesale Electricity Market, 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; and
    • encourage the taking of measures to manage the amount of electricity used and when it is used.

    The Wholesale Electricity Market is run by the Australian Energy Market Operator. For information on Wholesale Electricity Market structure, market rules and governance arrangements, visit the Australian Energy Market Operator website [external].

    Find out more

    The Economic Regulation Authority licences electricity operators in Western Australia, including generators, distributors and retailers [external].

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