Market Power Mitigation Strategy - Consultation Paper
Energy Policy WA has completed its final design for the Market Power Mitigation Strategy to be implemented in the new Wholesale Electricity Market.
This Consultation Paper continues on from the work of the Energy Transformation Taskforce (Taskforce), who reaffirmed some components of its proposed market power mechanism in its 2021 Information Paper. It also recommended that other components undergo more analysis and consultation.
Energy Policy WA presented on the proposed design to a session of the Transformation Design and Operation Working Group (TDOWG) on Thursday 18 August 2022.
The window for submitting feedback closed at 5:00pm on 1 September 2022.
Market Power Mitigation Strategy - Information Paper
Energy Policy WA’s final design for the Market Power Mitigation strategy aims to provide certainty and clarity on how the components of the Market Power Mitigation framework will be implemented and conducted. It will aim to provide further clarity on the obligations on market participants and what conduct is expected of them.
The framework combines the elements previously confirmed by the Taskforce with the elements that have been confirmed following the latest round of stakeholder consultation by Energy Policy. A copy of the Information Paper can be found below.
Exposure Drafts of the Market Power Mitigation Wholesale Electricity Market (WEM) Amending Rules
Energy Policy WA released an initial exposure draft of the Market Power Mitigation Wholesale Electricity Market (WEM) Amending Rules. This draft implements the updated Market Power Mitigation framework from the Information Paper. Exposure Draft #1 was published on 10 November 2022 and stakeholder submissions can be found below.
A session of the Transformation Design and Operation Working Group was held on Tuesday 28 February 2023, to facilitate feedback on Exposure Draft #2.
The window for submitting feedback closed at 5:00pm, 7 March 2023
Stakeholder submissions on the Exposure Draft #2 can be found below.
Stakeholder feedback has been considered and a summary of responses to submissions received can be found below.
The Wholesale Energy Market (Tranche 6A Amendments) Rules 2023, incorporating the final Market Power Mitigation and Compliance and Enforcement provisions, were approved by the Minister for Energy and a notice was published in the Government Gazette on Friday 31 March 2023
Information Paper
Response to Stakeholder Submissions
Consultation Paper
Market Power Mitigation Strategy and the Triennial Wholesale Electricity Market (WEM) Effectiveness Report
The Economic Regulation Authority (ERA) released a discussion paper, on 29 July 2022, on its triennial review of the effectiveness of the Wholesale Electricity Market.
A number of stakeholders referred to and quoted directly from the ERA’s discussion paper in their submissions on the Market Power Mitigation Strategy.
Stakeholders also requested that the ERA’s findings be considered in conjunction with both the design of the Market Power Mitigation Strategy and the outcomes of the Reserve Capacity Mechanism (RCM) Review.
In order to consider and respond to these submissions Energy Policy WA sought clarification from the ERA on relevant revenue adequacy findings. It also sought clarification on the potential solutions that have been identified in the ERA’s discussion paper.
A copy of the requests from Energy Policy WA and the response received from the ERA can be found below.
