The plan involves establishing a new market framework and structure to enable new participants to enter the industry.
To do this, the network (wires) business will be separated from Western Power’s generation and retail businesses. This means independent power producers wanting to enter the market won’t have to negotiate with Western Power, its competitor,for access to its transmission and distribution networks.
And Western Power’s monopoly position will be mitigated by splitting generation from retail. These will be housed in separate, Government owned new businesses that will commence operation on 31 March 2006.
To make sure all new entrants can use the electricity grid on an equal basis, an Electricity Networks Access Code 2004 has been established. The Code is independently administered by the Economic Regulation Authority.
Retailers and generators will be able to buy and sell electricity, in accordance with independently regulated market rules, once the Wholesale Electricity Market commences operation planned for mid 2006.
The Independent Market Operator has been established to run the market and ensure adequate generation capacity is available each year to meet peak demand.
A robust customer protection framework has also been established to protect the interests of small use customers in the new electricity market. Read more >>
