The Wholesale Electricity Market (WEM) Rules and the Gas Services Information (GSI) Rules require the ERA to determine the allowable revenue and forecast capital expenditure for the Australian Energy Market Operator (AEMO) to carry out its functions in Western Australia. AEMO can recover its costs from market participants through market fees. These costs are eventually passed through to consumers.
AEMO must submit a proposal to the ERA outlining its proposed funding for the upcoming three-year review period. AEMO can also submit a proposal for additional funding during the review period.
2022-2025 Allowable Revenue and Forecast Capital Expenditure
On 17 December 2021, AEMO submitted its proposal for funding for the AR6 review period (1 July 2022 – 30 June 2025). AEMO proposed allowable revenue of $156.2 million and forecast capital expenditure of $69.4 million for AR6.
On 8 February 2022, the ERA published an issues paper seeking comment from interested parties on AEMO’s proposal. The consultation period closed on Tuesday 8 March 2022. The ERA received six submissions in response to the issues paper which are available below.
On 31 March 2022, the ERA published its draft determination seeking comment from interested parties on determining an allowable revenue of $135.9 million and a forecast capital expenditure of $52 million. The consultation period closed on Thursday 28 April 2022. The ERA received eight submissions in response to the draft determination which are available below.
On 31 May 2022, the ERA published its final determination. The ERA determined $142.3 million of allowable revenue and $61.5 million in forecast capital expenditure for AEMO to perform its functions under the WEM Rules and GSI Rules in Western Australia for the AR6 period.
The WEM and GSI Rules also require the ERA to publish and amend two guidelines following public consultation, including a:
- Funding proposal guideline, to provide clarity and guidance to AEMO and market participants regarding the level of detail about projects, functions and costs expected in AEMO’s proposal.
- Regulatory reporting guideline, to provide clarity and guidance on AEMO’s annual financial reporting obligations.
On 29 October 2021, the ERA published a funding proposal guideline in advance of the AR6 determination process. The guideline is intended to be used for both the three-year funding proposals and for any additional in-period funding proposals.
On 30 August 2022, the ERA published a draft regulatory reporting guideline and supporting template for public consultation. The consultation period closed on Tuesday 13 September 2022. The ERA received two submissions in response to the draft regulatory reporting guideline and supporting template which are available below. After considering stakeholder feedback, the ERA published the final guideline with effect from 21 September 2022.
On 29 September 2022, the ERA published a draft funding proposal guideline for public consultation. The consultation period closed on Thursday 13 October 2022. The ERA received one submission in response to the draft funding proposal guideline which is available below. After considering stakeholder feedback, the ERA published the final guideline with effect from 28 October 2022.
In period funding request 2023
On 28 April 2023, the ERA published AEMO’s proposal for an increase in forecast capital expenditure of $47.11 million for the sixth allowable revenue period from 1 July 2022 to 30 June 2025. The ERA has published its draft determination on 19 July 2023. The consultation period closed on 2 August 2023. The ERA received two submissions in response to the draft determination which are available below.
The ERA published its final determination on 13 September 2023 approving an additional $46.94 million forecast capital expenditure to perform its functions under the WEM Rules and GSI Rules in Western Australia for the AR6 period.
In period funding request 2024
On 19 March 2024, the ERA published AEMO’s proposal for an increase in forecast capital expenditure of $39 million and additional operating expenditure of $59.2 million for the sixth allowable revenue period from 1 July 2022 to 30 June 2025. The ERA published its draft determination on 15 May 2024. The consultation period closed on 29 May 2024. The ERA received seven submissions in response to the draft determination which are available below. In AEMO’s response to the ERA’s draft determination, AEMO’s request for operating expenditure was revised to $59.99 million.
The ERA published its final determination on 28 June 2024, approving $58.29 million in operating expenditure and $37.9 million in additional forecast capital expenditure for AEMO to perform its functions under the WEM Rules for the remainder of the AR6 period.
2024 in-period adjustment - Papers
2024 in-period adjustment – Public submissions
2023 in-period adjustment - Papers
2023 in-period adjustment - Public submissions
