Understanding the WA Electricity Market for Businesses

Western Australia’s electricity market operates a little differently to the other states. Unlike the east coast, which is controlled by the National Electricity Market, WA operates under the Wholesale Electricity Market (WEM). The WEM provides electricity to those located in the South West Interconnected System (SWIS), an electricity distributed network operated by Western Power.

The West Australian energy market was deregulated in 2006, allowing contestability and competition within the market. However, the option to switch energy providers is still only available to contestable customers.

West Australian Networks

Western Power owns and operates the majority of the SWIS, which extends north to Kalbarri, east to Kalgoorlie and south to Albany. The remaining areas are powered by Horizon Power.

• Western Power: Accountable for the construction, maintenance and day-to-day operation of the power chain within the SWIS. Western Power’s Network is the only regulated network in Western Australia.
• Horizon Power: Generates, distributes and sells electricity in regions beyond the South West Interconnected System (SWIS).
• Synergy: Takes care of generating and selling energy within the SWIS to the non-contestable market.
  
  

Contestable customers

Electricity prices are government regulated for households and small businesses. This means a government body (Synergy) sets the price for electricity and not the retailers. However, many large businesses have the option of securing an alternative electricity provider of their choice.

To be contestable to switch to an alternative electricity provider in WA, you must meet the following criteria:

• You use more than 50 MWh of electricity each year; and
• You live in the SWIS
  
  

If the above applies to you, you have the option of switching your electricity provider to secure a more competitive electricity rate for your business or seek a better customer service experience.

As the average household only consumes around 6MWh of electricity each year, most residential customers and small businesses are considered non-contestable. In the SWIS, these customers are supplied by Synergy.

However, large businesses using above the 50 MWh per year currently have a choice of 9 retailers. Of those retailers, Infinite Energy provides electricity through our subsidiary, Blue Star Energy. 

Infinite Energy's electricity offering

Infinite Energy offers Perth businesses a more competitive rate for their electricity, creating customised tariffs and energy plans that are designed to suit your consumption. We can help you reduce the amount of electricity you need to purchase by offering professional advice on how to implement energy efficiency measures, the installation of solar power if appropriate, and providing you with tools to measure and monitor your energy usage in real time.

If you’d like to know more about how our customised electricity plans can benefit your business, contact us today or email commercial@infiniteenergy.com.au.