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).
The objectives of the Wholesale Electricity Market, as in the Electricity Industry Act 2004, are to:
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].
The Economic Regulation Authority licences electricity operators in Western Australia, including generators, distributors and retailers [external].