The ERA monitors the Wholesale Electricity Market and investigates any behaviour that has resulted in the market not functioning effectively. This includes:
- Inappropriate and anomalous market behaviour, including the abuse of market power and exploitation of any shortcomings of the Electricity System and Market Rules.
- Market design and market structure problems.
- The effectiveness of procurement processes of ancillary and balancing support services, including ancillary service contracts and balancing support contracts.
If the ERA considers there are any specific events or systemic behaviour or matters that have impacted the effectiveness of the market, the ERA can report these to the Coordinator of Energy and the Minister for Energy.
Market Participants can notify the ERA of any behaviour that reduces the effectiveness of the market. Notifications should include the following information:
- Date of notification
- Party making the notification
- Party whom the notification is made against
- Description of the behaviour and how it reduces the effectiveness of the Wholesale Electricity Market
- Date and timing of behaviour observed (if applicable)
- Any other relevant information.
Notifications should be provided to the ERA at Market.Monitoring@erawa.com.au.
ERA reviews
The ERA conducts periodic reviews to ensure aspects of the WEM are functioning as intended.
Synergy’s regulatory scheme (EGRC Scheme)
Every two years, the ERA reviews the operation of the regulatory scheme designed to mitigate any competition concerns from the merger of the former State-owned generator Verve Energy with retailer Synergy. The ERA prepares a report for the Minister for Energy that assesses the effectiveness of the scheme and make any recommendations for improvement.
Limit Advice and Constraint Equations
The ERA also reviews, every three years, the Constraint Equations developed by the Australian Energy Market Operator (AEMO). Constraint equations are mathematical representations of any network limits in place that may affect the dispatch of electricity. As part of this review, we also consider the Limit Advice provided by Western Power to AEMO.
Portfolio assessment
The ERA conducts portfolio assessments and market power tests at regular, specified timeframes throughout the year.
Portfolio assessments assign facilities to portfolios based on registration, ownership, or operational control.
Constrained portfolio assessment is based on facilities subject to a binding network constraint during a Rolling Test Window.
Following identification of Portfolios and Constrained portfolios, the ERA applies a materiality threshold (the market power test).