The WA IPA has successfully lobbied for the following electricity market reforms which are now in place:

 

IPA policy position

Transfer of operation of the WA electricity market to the Australian Energy Market Operator (AEMO).

Outcome/current position

The AEMO was made the operator of the WA electricity market in late 2015.


IPA policy position

A capacity mechanism market should be retained but altered to make it more responsive to supply and demand.

Outcome/current position

The State Government has implemented a suite of rule changes, endorsed by the WA IPA, to create a more dynamic market response to capacity allocation and pricing and transitioning to an auction process. This should ultimately reduce oversupply and increase competition. The market is currently scheduled to shift to a capacity auction by 2021, at the latest.


IPA policy position

System management and the market operator should be merged to streamline the functional operation of the electricity system, and to help balance the concerns of network operations against other system management priorities. This would mean the operation of the electricity network is more attuned with the needs of the private electricity producers and doesn’t favour Synergy.

Outcome/current position

System management has been merged with the market operator.


IPA policy position

Solar power purchase agreement (PPA) providers should be able to to sell electricity to consumers. The cost of obtaining a licence and compliance has been prohibitive. Under Solar PPAs, companies install solar systems on a customer's roof at no up-front cost, with the customer agreeing to buy all the electricity produced by the system for a set period at an agreed price.

Outcome/current position

The Minister for Energy announced in August 2016 that solar purchase agreement providers could now apply directly to the Public Utilities Office (PUO) for exemptions from the requirement to hold a retail licence in order to sell electricity to consumers.


IPA policy position

Synergy's uneconomic generation fleet should be retired. 

Outcome/current position