Fees and charges
Under the WEM Rules, fees are charged for registration of Participants and Facilities.
Registration type Fee per registration Rule Participant Registration Application Fee $665 Facility Registration Application Fee $335 Facility De-Registration Application Fee $0 Facility Transfer Application Fee $380
Type Application fee Conditional Certification of Reserve Capacity $665 Resubmission - Application for Early Certified Reserve Capacity $6,095
Information to be released on application
Under WEM Rule 10.4, AEMO may charge a fee for provision of information, where that information is requested from AEMO.
Upon receiving a request for information under this WEM Rule, AEMO will advise the relevant Participant of the fee for this service based on an estimate of the time required and an hourly charge.
Market fees for 2015–16
AEMO is required to charge Market Fees in accordance with clause 2.24 of the WEM Rules to recover the costs of:
- AEMO and the IMO.
- System Management's wholesale market related functions.
- The wholesale market-related functions of the Economic Regulatory Authority (ERA).
WEM Rule 2.24.2 requires that AEMO publish, before 30 June each year, the level of Market Fee rate for the coming financial year.
The Market Fee rate for 2015–16 was set at $0.908/MWh.
This fee applies to all metered load and metered generation of Market Participants from 1 July 2015 unless revised under WEM Rule 2.24.2A.
In accordance with clause 9.13.1 of the WEM Rules, the fee rate is based on spreading the total required revenue over both the total generation and the total consumption of electricity in the South West integrated system (SWIS).
There are two main variables in setting Market Fees. These are:
- Target Revenue (or budget) which needs to be set to adequately cater for the costs of AEMO, System Management, and the ERA.
- Forecast energy supply/consumption.
Revenue to be recovered through market fees
The total revenue to be recovered through Market Fees is expected to be as follows:
Total Revenue (000)
AEMO Revenue Requirement
SM Revenue Requirement
ERA Revenue Requirement
Total Revenue to be Recovered through Market Fees
AEMO 2015–16 Budget
On 30 April 2015, the IMO submitted to the Minister its budget proposal for 2015–16 as part of its Operational Plan.
The 2015–16 budget was consistent with the Allowable Revenue approved by the ERA.
A revenue target of $19.012 million is expected to be recovered from Market Participants through Market Fees during 2015–16 subject to any revision under Market Rule 2.24.2A. This includes $14,000 as the Inter-Period Adjustment for the 2013–14 Actual Audited deficit as permitted under WEM Rule 2.22.7.
The breakdown of this budget into Market Operation, System Planning and Market Administration must be published with the publication of the Market Fee rate. This is as follows:
Revenue Requirement (000)
EMR Recommendations – initial planning
Total Revenue Requirement
System Management Budget
System Management's budget for 2015–16 of $14.041 million ($15.105 million in 2014–15) is consistent with the Allowable Revenue approved by the ERA, and is to be recovered from Market Participant fees.
The ERA Wholesale Electricity Market-related costs of $1.218 million ($2.488 million in 2014–15), as approved by the Government, are to be recovered from Market Participant fees.
Forecast energy supply/consumption
Forecasts prepared for the 2014 Electricity Statement of Opportunities (ESOO) are the latest available assessment of energy forecast supply/consumption figures going forward – this “expected” energy forecast was used as the basis for calculating 2015–16 Market Fees.
The 2014 ESOO “expected” forecast of sent-out energy in 2015–16 was 18,731 GWh. This was up from 18,680 GWh that was used in setting the 2014–15 Fee Rate (an increase of 51 GWh or 0.3%). The increase was related to forecast population growth, offset partially by a higher photovoltaic (PV) uptake and a reduction in block loads.
In accordance with the WEM Rules, the ESOO sent-out forecasts must be loss-adjusted to the Muja reference for use in calculating the actual monthly Market Fees. An average (generation) loss factor of 1.0068089 (average for the 2013–14 Reserve Capacity Year) was used to loss-adjust the ESOO sent-out figure to the Muja reference node. This resulted in an energy forecast supply/consumption figure of 18,859 GWh.
Under the WEM Rules, the fee rates are based on spreading the total required revenue over both the total generation and the total consumption of electricity in the market. This incorporates all energy, including that sold/bought under bilateral contracts.
The “expected” energy forecast, therefore, is effectively doubled to apply Market Fees equally across Market Generators and Market Customers. This results in an amount of 37,718 GWh (37,583 GWh in 2014–15), over which all targeted revenue is spread to calculate a Market Fee rate.
Breakdown of market fees
The Market Fee rate is structured in three parts to provide transparency of fee rates related to AEMO, System Management, and the ERA.
Spreading the total revenue requirement over the projected energy supply and consumption of 37,718,000 MWh (37,583,000 in 2014–15) results in the following fee rates:
AEMO Fee Rate
System Management Fee Rate
Economic Regulation Authority Fee Rate
Total Market Fee Rate
This information is published in accordance with Market Rule 10.5.1 (u).