WA's wholesale electricity market commences trade

The State Government has announced the commencement of energy trading in Western Australia's new wholesale electricity market.

Energy Minister Fran Logan said the day marked a significant milestone in the State Government's electricity reform program, which aimed to create a more reliable, sustainable and competitive energy industry for WA.

Mr Logan said the wholesale electricity market would provide a more efficient mechanism for energy industry participants to trade electricity within the South-West Interconnected System.

"Importantly, the new market will provide greater opportunities for the renewable energy sector and for demand side management," he said.

"This will produce environmental benefits from new renewable energy generation sources and provide more flexible arrangements in terms of electricity supply."

The Independent Market Operator, established in December 2004, will administer and oversee the ongoing implementation of the wholesale electricity market.

The Minister said an important function of the IMO was to ensure there is sufficient capacity in the market to meet the future generation requirements of the SWIS.

"The implementation of the wholesale electricity market is part of the State Government's commitment to further electricity reform in WA," he said.

"Together with the recent disaggregation of the Western Power Corporation, the wholesale electricity market will have tangible benefits for the competitiveness of the electricity industry in this State.

"This will ultimately provide greater choice for consumers and place downward pressure on prices."

Mr Logan said the design of the wholesale electricity market had been carefully developed through a partnership between the Government, the IMO and the electricity industry.