Consultancy to Assist with the Cost Allocation Review

During the Energy Transformation Strategy (ETS) development and implementation process, some stakeholders identified issues with the allocation of Market Fees and Essential System Services (ESS) costs to Market Participants. However, time constraints during the ETS prevented the Energy Transformation Taskforce from fully addressing all of these concerns.

Therefore, the Coordinator of Energy (Coordinator) is undertaking a review of the allocation of Market Fees and ESS costs (Cost Allocation Review).

The Coordinator is conducting the Cost Allocation Review under clause 2.2D.1 of the Wholesale Electricity Market (WEM) Rules in 2022 and will develop any WEM Rules resulting from the review in 2023. Clause 2.2D.1(h) of the WEM Rules confers the function on the Coordinator to consider and, in consultation with the MAC, progress the evolution and development of the WEM and the WEM Rules.

A Scope of Works for the Cost Allocation Review is available at https://www.wa.gov.au/government/publications/cost-allocation-review-2022-scope-of-works.

In addition, the Market Advisory Committee (MAC) maintains a Market Development Forward Work Program to track and progress issues that have been identified by stakeholders. Several issues on the current Market Development Forward Work Program relate to the allocation of market costs and will also be addressed in the Cost Allocation Review – see Appendix 1 of the Scope of Works.

The Customer is seeking offers for the provision of the consultancy services as indicated in Part A to this Request to assist with the Cost Allocation Review, consistent with the Scope of Works.