2014 Reports 2014 Reports to the to the

MinisterMinisterMarkets TeamKen Michael Room, 25 September 2014

Ensuring quality services for a reasonable price 1

Workshop

Ensuring quality services for a reasonable price 2

Markets Team

Bruce LaymanBruce Layman Elizabeth WaltersElizabeth Walters

Jeremy CookJeremy Cook

Natalie Jackson Natalie Jackson

Holly MedranaHolly Medrana

Shibli KhanShibli Khan

Purpose of Purpose of this this

workshopworkshop1. Wholesale Electricity

Market

2. Electricity Generation and Retail Corporation Regulatory Scheme

Ensuring quality services for a reasonable price 3

to be considered in preparation of Discussion Papers.

Stakeholder feedback on the effectiveness of:

Ensuring quality services for a reasonable price 4

Workshop: Content and Process

9:00am to 10.45am

9:00am to 10.45am

10:45am to 11:00am:

Break

10:45am to 11:00am:

Break

11:00am to 12:00pm

11:00am to 12:00pm

Ensuring quality services for a reasonable price 5

Process

TodayToday OctoberOctoberNovember/

December

November/

DecemberEarly 2015Early 2015

Follow upFollow up Request a meeting

Issues for consideration

Feedback for future engagement

Ensuring quality services for a reasonable price 6

Handouts:

Addresses matters ERA has raised for a number of years

Industry structure –government ownership

Market Governance

Reserve Capacity Mechanism

Constrained network access

Ensuring quality services for a reasonable price 7

Electricity Electricity Market Market

Review: ERA Review: ERA SubmissionSubmission

Perspective- ERA Review based on market as is

Not duplicate EMR

Recognise market likely to be modified

Adapt focus

Ensuring quality services for a reasonable price 8

Electricity Electricity Market Review Market Review Implications for Implications for

ERA ReviewERA Review

2014 Review of 2014 Review of Wholesale Wholesale Electricity Electricity

MarketMarket

Triennial WEM Report

2014 Annual WEM Report to the Minister

Ensuring quality services for a reasonable price 9

Incorporates:

Ensuring quality services for a reasonable price 10

ERA’s review

Ensuring quality services for a reasonable price 11

Market Market ObjectivesObjectives

Ensuring quality services for a reasonable price 12

Specific requirements for report

Ensuring quality services for a reasonable price 13

Elements of Elements of Market required Market required to be reviewedto be reviewed

Performance of “new” Balancing and LFAS markets

Bidding behaviour

SRMC requirements

Constraint payments

Ensuring quality services for a reasonable price 14

Considerations Considerations from 2013 from 2013

Report to the Report to the MinisterMinister

Matters flagged for further review:

Your ViewsYour Views

Ensuring quality services for a reasonable price 16

BreakBreak Return for:2014 Review of EGRC Regulatory Scheme

Ensuring quality services for a reasonable price 17

First annual review of EGRC Regulatory Scheme.

Ensuring quality services for a reasonable price 18

2014 Review of 2014 Review of EGRC Regulatory EGRC Regulatory

SchemeScheme

Ensuring quality services for a reasonable price 19

The EGRC The EGRC Regulatory Regulatory

SchemeScheme

Ensuring quality services for a reasonable price 20

ERA’s requirements

Ensuring quality services for a reasonable price 21

Aims of EGRC Aims of EGRC Regulatory Regulatory

SchemeScheme

Ensuring quality services for a reasonable price 22

Components of Components of SchemeScheme

Ensuring quality services for a reasonable price 23

How to assess?How to assess?

Your ViewsYour Views

Ensuring quality services for a reasonable price 24

Level 4, Albert Facey House

469 Wellington Street

Perth WA 6000

www.erawa.com.au

(08) 6557 7900

Ensuring quality services for a reasonable price 25

Economic Economic Regulation Regulation AuthorityAuthority

Contact us: