The market operator performs a vital role in managing the electricity and gas systems and markets across Australia. In WA, AEMO recovers the costs of performing its functions via fees paid by market participants, based on expenditure approved by the State’s Economic Regulation Authority. In the last few years, AEMO’s costs have sky-rocketed in WA driven in part by the amount of market reform and the challenges of budgeting projects that are not adequately defined. Here we take a look at how AEMO’s costs have escalated, proposed changes to the allowable revenue framework, and what can be done to keep a lid on costs.
