The Electricity System and Market (ESM) Rules and the Gas Services Information (GSI) Rules require the ERA to determine the allowable revenue and forecast capital expenditure for the Australian Energy Market Operator (AEMO) to carry out its functions in Western Australia. AEMO can recover its costs from market participants through market fees. These costs are eventually passed through to consumers.
AEMO must submit a proposal to the ERA outlining its proposed funding for the upcoming three-year review period. AEMO can also submit a proposal for additional funding during the review period.