Electricity Market

The Wholesale Electricity Market (WEM) was set up so generators can offer electricity for sale to retailers who purchase electricity for their customers. It was part of the Western Australian Government’s reform of the way electricity is generated, distributed and retailed in Western Australia. There are now a number of generators and retailers operating in WA.

The WEM operates within the South-West Interconnected System or SWIS (the area bound by Kalbarri in the north, Kalgoorlie in the east, and Albany in the south). Verve Energy provides about 60% of the generating capacity in the SWIS.

An Independent Market Operator (IMO) operates and administers the market.

The bulk of electricity is traded as contracts between generators and retailers. In addition, the Short Term Energy Market provides for day-ahead and ‘realtime’ trading.

The IMO arranges the orderly despatch of all the electricity traded and the System Operator, which is an independent operating arm of the network business, manages the despatch.

Verve Energy sells its electricity on the WEM as well as through bilateral contracts with other participants in the market. The majority of our electricity is sold to Synergy.

Verve Energy has the responsibility of providing balancing services which underpin the reliability of the SWIS.

More information about the market is available on www.imowa.com.au and www.era.wa.gov.au.