The Public Utilities Office has completed a review to provide advice to the Minister for Energy on improvements to the reserve capacity pricing arrangements in the Wholesale Electricity Market. This advice considered the suitability of implementing an auction to determine capacity prices and other alternative pricing arrangements.
The Final Recommendations Report outlining the recommended reforms to the reserve capacity pricing arrangements is available below.
The Public Utilities Office has prepared draft amendments to the Wholesale Electricity Market Rules to implement the recommendations, which are available below for stakeholder feedback. Submissions closed on 4 April 2019.
Implementation of these recommended changes to the reserve capacity pricing and procurement arrangements will occur at the same time as the development of other initiatives by the Public Utilities Office to give effect to broader improvements to the Wholesale Electricity Market. These initiatives will necessitate the consideration of further enhancements to the Reserve Capacity Mechanism arrangements, to allow it to remain effective in ensuring power supply security in the south west of the State. This will be considered as part of the Energy Transformation Strategy.
On 22 August 2018, the Public Utilities Office published a Draft Recommendations Report outlining its proposed recommendations on potential reforms to the reserve capacity pricing arrangements. The Draft Recommendations Report and stakeholder submissions received in response are provided below.
On 9 April 2018, the Public Utilities Office published a consultation paper on alternative approaches to a capacity auction that could be used to achieve a more responsive pricing of capacity resources. The consultation paper and stakeholder submissions received in response are provided below.
All enquiries on this project should be directed to Mr Aden Barker, Project Director, Wholesale Energy Markets, Public Utilities Office on (08) 6551 4692 or [email protected].