Post on 12-Apr-2017
2014 Reports to the
MinisterMarkets TeamKen Michael Room, 25 September 2014
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Workshop
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Markets Team
Bruce Layman Elizabeth Walters
Jeremy Cook
Natalie Jackson
Holly Medrana
Shibli Khan
Purpose of this
workshop1. Wholesale Electricity
Market2. Electricity Generation
and Retail Corporation Regulatory Scheme
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to be considered in preparation of Discussion Papers.
Stakeholder feedback on the effectiveness of:
EMR Review of WEM - Overview of ERA Requirements Considerations from 2013 Report to Minister Workshop
The EGRC Regulatory Scheme Overview of ERA’s Requirements Workshop
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Workshop: Content and Process
9:00am to 10.45am
10:45am to 11:00am:
Break
11:00am to 12:00pm
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Process
Today October November/December
Early 2015
Preliminary workshop
Individual meetings
Discussion Paper and Public
Consultation
Reports provided to
Minister
Follow up Request a meeting Issues for
consideration Feedback for future
engagement
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Handouts:
Addresses matters ERA has raised for a number of years
Industry structure –government ownership
Market Governance Reserve Capacity
Mechanism Constrained network access
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Electricity Market
Review: ERA Submission
Perspective- ERA Review based on market as is
Not duplicate EMR Recognise market likely
to be modified Adapt focus
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Electricity Market Review Implications for
ERA Review
2014 Review of Wholesale Electricity
Market Triennial WEM Report 2014 Annual WEM
Report to the Minister
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Incorporates:
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ERA’s review
Assess the effectiveness of the market in achieving the Market Objectives
Investigate market behaviour if it has resulted in the market not functioning effectively
Make recommendations for increasing the effectiveness of the market
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promote the economically efficient, safe and reliable production and supply of electricity and electricity related services in the SWIS;
encourage competition among generators and retailers in the SWIS, including by facilitating efficient entry of new competitors;
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;
minimise the long-term cost of electricity supplied to customers from the SWIS
encourage the taking of measures to manage the amount of electricity used and when it is used.
Market Objectives
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Specific requirements for report
Summary of data and analysis compiled by the IMO and ERAAssess effectiveness of each aspect of the market including the effectiveness of the IMO and System Management in carrying out their functionsAssessment of specific events, behaviour, matters that impacted effectiveness of market
Recommend measures for increasing the effectiveness of the market
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Reserve Capacity market Market for bilateral contracts for
capacity and energy The STEM Balancing Dispatch process Planning processes Administration of the market,
including Market Rule change process
Ancillary Services
Elements of Market required to be reviewed
Performance of “new” Balancing and LFAS markets Bidding behaviour SRMC requirements Constraint
payments
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Considerations from 2013
Report to the Minister
Matters flagged for further review:
Proportion of Capacity offered in Price Ranges by quarter and quarterly Average Peak and Off-Peak Balancing Price
Your Views
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Break Return for:2014 Review of EGRC Regulatory Scheme
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First annual review of EGRC Regulatory Scheme.
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2014 Review of EGRC Regulatory
Scheme
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Comprises: The EGRC Regulations The Segregation and Transfer
Pricing Guidelines The (Standard Product)
Wholesale Arrangements
The EGRC Regulatory
Scheme
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ERA’s requirements
Review effectiveness of operation of Scheme at least annually and make recommendations for improvement,
Also required to investigate any non-compliance identified by the Auditor General.
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Scheme Aims to: ensure Synergy does not unduly
preference RBU and GBU over third party retailers & generators;
provide private sector access to electricity on non-discriminatory terms;
mitigate concerns of private-sector market participants.
Aims of EGRC Regulatory
Scheme
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Segregation into business units Transfer pricing Ring fencing
Wholesale trading no discriminating between RBU and competitors no taking into account financial interests of RBU Wholesale Electricity Supply Policy & Wholesale Energy
Credit Policy Standard Products - price notionally paid by RBU for
equivalent product
Compliance Regime AG audits and Authority investigates and enforces
Components of Scheme
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Test against: Does it ensure Synergy does not unduly
preference RBU and GBU over third party retailers & generators;
Does it provide private sector access to electricity on non-discriminatory terms;
Does it mitigate concerns of private-sector market participants.
Complexity and cost
Practical experience
How to assess?
Your Views
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Level 4, Albert Facey House469 Wellington StreetPerth WA 6000
www.erawa.com.au(08) 6557 7900
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Economic Regulation Authority
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