WEM Procedure Changes

The Coordinator of Energy develops and changes Wholesale Energy Market (WEM) Procedures that relate to her functions in accordance with the WEM Rules.

The Australian Energy Market Operator (AEMO), the Economic Regulation Authority (ERA) and Western Power also have responsibility under the WEM Rules for WEM Procedures related to their specific functions.

Past procedure changes relevant to Coordinator of Energy Procedures can be found on the webpage: Past WEM Procedure Changes. Further information about the procedure change process is provided below.

Overview of the Procedure Change Process

Only the party responsible for a WEM Procedure under the WEM Rules (responsible procedure administrator) can initiate the Procedure Change Process for that procedure. However, Rule Participants may approach the responsible procedure administrator with suggested changes to a WEM Procedure. Suggestions in relation to Coordinator of Energy Procedures can be sent to energymarkets@demirs.wa.gov.au.

Any Procedure Change Proposal must be:

• consistent with the Wholesale Market Objectives; and
• consistent with the WEM Rules, the Electricity Industry Act 2004 and Regulations.

The Wholesale Market Objectives are:

• to promote the economically efficient, safe and reliable production and supply of electricity and electricity related services in the South West interconnected system;
• to encourage competition among generators and retailers in the South West interconnected system, including by facilitating efficient entry of new competitors;
• to avoid discrimination in that market against particular energy options and technologies, including sustainable energy options and
• technologies such as those that make use of renewable resources or that reduce overall greenhouse gas emissions;
• to minimise the long-term cost of electricity supplied to customers from the South West interconnected system; and
• to encourage the taking of measures to manage the amount of electricity used and when it is used.

AEMO, the ERA, Western Power and the Coordinator of Energy are all subject to the same process for developing new procedures or making changes to existing procedures. Once the responsible procedure administrator has developed a new procedure or a proposed amendment to an existing procedure, it publishes a Procedure Change Proposal and a call for submissions from the public. AEMO, the ERA, Western Power or the Coordinator of Energy may convene the Market Advisory Committee (MAC) to discuss the proposal.

After reviewing submissions, the procedure administrator must publish a Procedure Change Report. This report should include the original proposal, a summary of submissions, responses to the issues raised, the amended procedure wording, and the effective date of the new procedure.

WEM Procedures have more process-related detail than the WEM Rules and are expected to be subject to relatively frequent refinements and updates.

The issues addressed in AEMO procedures can be quite technical and specialised, so the MAC has decided to convene working groups to study the relevant issues. For more information, visit the web page: AEMO Procedure Change Working Group.