Wholesale Electricity Market Rules (WA)

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WESTERN	4323
AUSTRALIAN GOVERNMENT

ISSN 1448-949X

5 October 2004 GOVERNMENT GAZETTE, WA 4325

ELECTRICITY INDUSTRY ACT 2004

ELECTRICITY INDUSTRY (WHOLESALE ELECTRICITY

MARKET) REGULATIONS 2004

WHOLESALE ELECTRICITY MARKET RULES

I, Eric Ripper, Minister for Energy for the State of Western Australia, under regulation 6(2) of the Electricity Industry (Wholesale Electricity Market) Regulations 2004 hereby make the wholesale electricity market rules contained in this document.

These rules are to commence in accordance with regulation 6(3) of the Electricity Industry (Wholesale

Electricity Market) Regulations 2004.

ERIC RIPPER.

Dated at Perth this 1st day of October 2004.

————

Table of Contents 1. INTRODUCTION

The Market Rules

1.1. Authority of Market Rules

1.2. Objectives

Conventions

1.3. Electricity Industry Act and Regulations
1.4. Other rules of interpretation
1.5. Subservient Documents
1.6. Notices

1.7. Publication

Staging

1.8. Staging of the Market Rules

1.9. Transition

2. ADMINISTRATION

Functions and Governance

2.1. Independent Market Operator
2.2. System Management

2.3. The Market Advisory Committee

Market Documents

2.4. Market Rules
2.5. Rule Change Proposals
2.6. Fast Track Rule Change Process
2.7. Standard Rule Change Process

2.8. Review of IMO Rule Amendment Decisions, Ministerial Approval and Coming into Force of Rule

Amendments

2.9. Market Procedures

2.10. Procedure Change Process

2.11. Coming into Force of Procedure Amendments

Monitoring, Enforcement and Audit

2.12. Standard of Performance
2.13. Market Rule Compliance Monitoring and Enforcement
2.14. Audit
2.15. Monitoring and Reporting Protocols

2.16. Monitoring the Effectiveness of the Market

Reviewable Decisions and Disputes

2.17. Reviewable Decisions
2.18. Disputes
2.19. First Stage Dispute Resolution
2.20. Second Stage Dispute Resolution

Market Consultation

2.21. Market Consultation

Budgets and Fees

2.22. Determination of the IMO’s budget
2.23. Determination of System Management’s budget
2.24. Determination of Market Fees

2.25. Payment of Market Participant Fees

Maximum and Minimum Prices and Loss Factors

2.26. Economic Regulation Authority Approval of Maximum and Minimum Prices

2.27. Determination of Loss Factors

Participation and Registration

2.28. Rule Participants
2.29. Facility Registration Classes
2.30. Facility Aggregation
2.31. Registration Process
2.32. Rule Participant Suspension and Deregistration
2.33. The Registration Forms

2.34. Standing Data

Communications and Systems Requirements

2.35. Dispatch Systems Requirements

2.36. Market Systems Requirements

Prudential Requirements

2.37. Credit Limit
2.38. Credit Support
2.39. Trading Limit
2.40. Outstanding Amount
2.41. Trading Margin
2.42. Margin Call
2.43. Prudential Market Procedure

2.44. Minister’s Emergency Powers

3. POWER SYSTEM SECURITY AND RELIABILITY

Security and Reliability

3.1. SWIS Operating Standards
3.2. Technical Envelope, Security and Equipment Limits
3.3. Normal Operating State
3.4. High Risk Operating State
3.5. Emergency Operating State
3.6. Demand Control
3.7. System Restart

3.8. Investigating Incidents in the SWIS

Ancillary Services

3.9. Definitions of Ancillary Services

3.10. Ancillary Service Standards
3.11. Determining & Procuring Ancillary Service Requirements
3.12. Ancillary Service Dispatch
3.13. Payment for Ancillary Services
3.14. Ancillary Service Cost Recovery

3.15. Review of Ancillary Service Requirements Process and Standards

Medium and Short Term Planning

3.16. Medium Term PASA
3.17. Short term PASA
3.18. Outage Scheduling
3.19. Outage Approval
3.20. Outage Recall

3.21. Forced Outages

Settlement Data

3.22. Settlement Data

4. RESERVE CAPACITY RULES

The Reserve Capacity Cycle

4.1. The Reserve Capacity Cycle

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The Reserve Capacity Expression of Interest

4.2. The Reserve Capacity Expression of Interest Process
4.3. Information to be Included in Requests for Expression of Interest

4.4. Information to be Included in Expression of Interests

The Long Term SWIS Capacity Requirements

4.5. Long Term Projected Assessment of System Adequacy

4.6. Reserve Capacity Requirements

Certification of Reserve Capacity

4.7. The Reserve Capacity Information Pack
4.8. Who Can Apply for Certification of Reserve Capacity

4.9. Process for Applying for Certification of Reserve Capacity

4.10. Information Required for the Certification of Reserve Capacity
4.11. Setting Certified Reserve Capacity

4.12. Setting Reserve Capacity Obligations

Commitment of Capacity to Auction or Bilateral Trade

4.13. Reserve Capacity Security

4.14. Market Participant Auction and Bilateral Trade Declaration

Reserve Capacity Auctions

4.15. Confirmation or Cancellation of Reserve Capacity Auctions
4.16. The Maximum Reserve Capacity Price
4.17. Reserve Capacity Auction Submission Process
4.18. Reserve Capacity Offer Format

4.19. Reserve Capacity Auction Clearing

Capacity Credits

4.20. Capacity Credits

Special Price Arrangements

4.21. Short Term Special Price Arrangements 4.22. Long Term Special Price Arrangements 4.23. Capacity Credits and Force Majeure

Addressing Shortages of Reserve Capacity

4.24. Supplementary Reserve Capacity

Testing, Monitoring and Compliance

4.25. Reserve Capacity Testing
4.26. Financial Implications of Failure to Satisfy Reserve Capacity Obligations

4.27. Reserve Capacity Performance Monitoring

Funding Reserve Capacity Purchased by the IMO

4.28. Funding Reserve Capacity Purchased by the IMO

Settlement Data

4.29. Settlement Data

5. NETWORK CONTROL SERVICE PROCUREMENT

Network Control Service Tender Process and Timelines

5.1. Definitions and Obligations
5.2. Network Control Service Procurement Requirements
5.3. Network Control Service Certification

5.4. Network Control Service tenders

Network Control Service Contracts

5.5. Contract Conditions
5.6. Network Control Service Contract Compliance Conditions

5.7. Network Control Service Dispatch

Payments and Settlement Data

5.8. Network Control Service Contracts Payments

5.9. Settlement Data

6. THE ENERGY MARKET

Energy Scheduling Timetable and Process

6.1. Weekly STEM Submission Timetable and Process
6.2. Bilateral Submission Timetable and Process
6.3. STEM Quantity Nomination Submission Timetable and Process
6.4. The STEM Auction Timetable and Process
6.5. Resource Plan Submission Timetable and Process

STEM Submission and Bilateral Submission Formats

6.6. Format of STEM Submission Data
6.7. Format of Bilateral Submission Data

6.8. Format of STEM Quantity Nomination Submission Data

The STEM Auction Process

6.9. The STEM Auction

6.10. Suspension of the STEM

Resource Plans

6.11. Format of Resource Plans

The Dispatch Merit Order

6.12. The Dispatch Merit Order

Balancing Pricing and Quantities

6.13. Real Time Dispatch Information
6.14. Calculation of MCAP, UDAP and DDAP
6.15. The Dispatch Schedule
6.16. The Metered Schedule
6.17. Balancing Settlement Quantities

6.18. Commitment Compensation

Market Advisories and Energy Price Limits

6.19. Market Advisories

6.20. Energy Price Limits

Settlement Data

6.21. Settlement Data

7. DISPATCH

Data used in the Dispatch Process

7.1. Data Used in the Dispatch Process
7.2. Load Forecasts and Ancillary Service Requirements
7.3. Outages, Maximum Supply Capability and Maximum Consumption Capability
7.4. Resource Plans

7.5. Dispatch Merit Orders

Dispatch Process

7.6. The Dispatch Criteria 7.7. Dispatch Instructions 7.8. Dispatch Instructions Implemented by System Management

7.9. Commitment

Dispatch Compliance

7.10. Compliance with Resource Plans and Dispatch Instructions

Advisories, Balancing Suspension and Reporting

7.11. Dispatch Advisories

7.12. Status Reports

Settlement and Monitoring Data

7.13. Settlement and Monitoring Data

8. WHOLESALE MARKET METERING

Metering Data Agents

8.1. Metering Data Agents

8.2. Duties of a Metering Data Agent

Meter Registry

8.3. Meter Registry

Meter Data Submissions

8.4. Meter Data Submission
8.5. Notices of Disagreement and Disputed Meter Data

8.6. Format of Meter Data Submissions

Metering Protocol Requirements

8.7. Metering Protocol Requirements

Support of Calculations

8.8. Support of Calculations

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9. SETTLEMENT

Introduction

9.1. Conventions

9.2. Settlement Procedure

Settlement Data

9.3. Data Collection
9.4. Capacity Credit Allocation Process

9.5. Format of Capacity Credit Allocation Submissions

Settlement Calculations

9.6. STEM Settlement Calculations for a Trading Week
9.7. The Reserve Capacity Settlement Calculations for a Trading Month
9.8. The Balancing Settlement Calculations for a Trading Day
9.9. The Ancillary Service Settlement Calculations for a Trading Month

9.10. The Commitment and Outage Compensation Settlement Calculations for a Trading Month

9.11. The Reconciliation of Settlement Calculations for a Trading Month
9.12. Network Control Service Calculations for a Trading Month
9.13. The Market Participant Fee Settlement Calculations for a Trading Month
9.14. The Net Non-STEM Settlement Amount for a Trading Month
9.15. The Service Fee Settlement Amount for a Trading Month

Settlement Statements

9.16. Settlement Cycle Timelines
9.17. STEM Settlement Statements
9.18. Non-STEM Settlement Statements
9.19. Adjusted Settlement Statements
9.20. Notices of Disagreement

9.21. Settlement Disputes

Invoicing and Payment

9.22. Invoicing and Payment

Default and Settlement in Default Situations

9.23. Default

9.24. Settlement in Default Situations

10. MARKET INFORMATION

Information Policy

10.1. Record Retention
10.2. Information Confidentiality Status
10.3. The Market Web Site

10.4. Information to be Released on Application

Information to be Released via the Market Web Site

10.5. Public Information
10.6. SWIS Restricted Information
10.7. Rule Participant Market Restricted Information

10.8. Rule Participant Dispatch Restricted Information

11. GLOSSARY

APPENDIX 1: STANDING DATA
APPENDIX 2: SPINNING RESERVE AND FIFTEEN MINUTE RESERVE COST ALLOCATION
APPENDIX 3: RESERVE CAPACITY AUCTION & TRADE METHODOLOGY
APPENDIX 4: MAXIMUM RESERVE CAPACITY PRICE METHODOLOGY
APPENDIX 5: INDIVIDUAL RESERVE CAPACITY REQUIREMENTS
APPENDIX 6: STEM BID ,STEM OFFER AND MCAP PRICE CURVE DETERMINATION
APPENDIX 7: DISPATCH SCHEDULE CALCULATION
APPENDIX 8: TOP-UP AND SPILL RULES
Appendix 8: Chapter 1—Introductory
Definitions
Interpretation
References to a member include its generators and customers
Appendix 8: Chapter 2—Membership
Market service provider is a member
Application for membership
Member must have access contract
Amendment of access contract to provide for cross-default in payment
Security from applicant if access contract not amended
One membership per access contract
Membership notice
Application disputes
When the rules apply to a member (other than the market service provider)
Cancelling membership
Security from member if access contract not amended

Parties may contract inconsistently with these rules

Appendix 8: Chapter 3—TUAS market
Obligation to provide
Payment obligation
Trading electricity and balancing electricity
Exit point for spill electricity
Entry point for top-up electricity
Member’s maximum trading requirement
Advance notice of likely unavailability
Nomination of trading amounts
Effect of an accepted nomination
Forecast production data
Balancing band
Calculating member’s imbalance
Members must maintain adequate generation capacity
These rules do not affect standby power and ancillary services arrangements
Top up and spill calculated on an aggregated basis
Relief from obligation to provide trading electricity
The TUAS market during a liquids event
Calculating member’s residual imbalance

ETR balancing provisions

Appendix 8: Chapter 4—Price lists
Price lists
Residual imbalance tariff list
Determining the price payable
High price days
Liquids events
Trading bands
The market service provider may offer higher spill prices

Replacement of price lists in changed circumstances

Appendix 8: Chapter 5—Pricing principles and review
Prices to be economically cost neutral
Top-up trading prices may include 3% margin
Trading prices may differ from balancing prices
Balancing top-up price not to exceed balancing spill price
Residual imbalance tariffs
Pricing period and pricing review
Administration Fee

Audit procedures

Appendix 8: Chapter 6—Compliance
Default
Payment default
Effect of payment default notice
General default
Effect of general default notice
Written warning for having a residual imbalance
Imbalance default
Effect of imbalance default notice
Default by the market service provider

No termination for member’s default

Appendix 8: Chapter 7—Intermittent renewable energy generators
Intermittent renewable generators defined
Output for intermittent renewable generators

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Appendix 8: Chapter 8—Dispute resolution
Applicant
Disputes
Procedure
Award by the arbitrator
Restrictions on awards
Effect of awards
No third party intervention in arbitration
Performance of obligations
Commercial Arbitration Act 1985 does not apply
Additional jurisdiction of arbitrator for contractual disputes

Procedural rules for contractual disputes

Appendix 8: Chapter 9—Other provisions
Provisions of access contract apply
Publishing information

Title to electricity

Appendix 8: Chapter 10—Operating procedures
Members must comply with operating procedures
Appendix 8: Chapter 11– TUAS Consultation Group
Appendix 8: Chapter 12—Amendment of rules
Transitional amendments
Submission of request for amendment of the rules
Amendment of TUAS market rules

Requirements for operating procedures

Appendix 8: Appendix 1—Application form
Date
Applicant
Contact person
Access contract
Modification of access contract
Information regarding security
Maximum trading requirements
Forecast production data

Signing

Appendix 8: Appendix 2—TUAS Audits
Audit of the market service provider
Auditor’s qualifications etc
Auditor’s conflict of interest
Terms of auditor’s retainer
Confidentiality
The market service provider, members must cooperate with auditor
Audit report
Level of Audit
Audit report

Audit summary report

Appendix 8: Appendix 3—Modified ETR balancing provisions

“21. Interpretation of regulations 22, 23 and 25
22. Balancing
23. Excess standby generation charge

24. Excess network usage charge

Appendix 8: Appendix 4—Modified EDR balancing provisions

“23. Interpretation of regulations 24, 25 and 27
26. Excess network usage charge

27. Other consequences of being out of balance

Appendix 8: Appendix 5—Operating Procedures
Communications
Line losses
High Price days
Liquids Event
Calculating band size for top-up trading bands
Calculating band size for spill trading bands
Forecast production data
Appendix 8: Appendix 6—Procedural rules for arbitration
Application
Informality and expedition
Arbitrator may request information
Right to representation
Procedure
Determinations
Contempt
Disclosure of information
Power to take evidence on oath or affirmation
Failing to attend as a witness
Failing to answer questions etc.
Intimidation etc.
Party may request arbitrator to treat material as confidential
Appeal to Court
Copies of decisions to be given to the Minister
Effect of appointment of new arbitrator on evidence previously given and awards and determinations
previously made.
Arbitrator may issue summons
Decision of the Arbitrator

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5 October 2004	GOVERNMENT GAZETTE, WA	4333
ELECTRICITY INDUSTRY ACT 2004

ELECTRICITY INDUSTRY (WHOLESALE ELECTRICITY

MARKET) REGULATIONS 2004

WHOLESALE ELECTRICITY MARKET RULES

1. Introduction
The Market Rules

1.1.	Authority of Market Rules
1.1.1.	These are the market rules made under the Regulations and contemplated by section 123 of the Electricity Industry Act 2004 (“Electricity Industry Act”).

Note: due to the scheme of the legislation the rules will have to be consistent with the regulations contemplated by section 122 of the Electricity Industry Act, when made

1.1.2. These Market Rules govern the market and the operation of the South West

interconnected system, including the wholesale sale and purchase of electricity,
Reserve Capacity, and Ancillary Services.

1.2. Objectives

1.2.1.

The objectives of the market are:

(a)	to promote the economically efficient, safe and reliable production and supply of electricity and electricity related services in the South West interconnected system;
(b)	to encourage competition among generators and retailers in the South West interconnected system, including by facilitating efficient entry of new competitors;
(c)	to avoid discrimination in that market against particular energy options and technologies, including sustainable energy options and technologies such as those that make use of renewable resources or that reduce overall greenhouse gas emissions;
(d)	to minimise the long-term cost of electricity supplied to customers from the South West interconnected system; and
(e)	to encourage the taking of measures to manage the amount of electricity used and when it is used.

Conventions

1.3.

Electricity Industry Act and Regulations

1.3.1.

A word or phrase defined in the Electricity Industry Act or the Regulations has the
same meaning when used in these Market Rules.

1.4.

Other rules of interpretation

1.4.1.

In these Market Rules, unless the contrary intention appears:

(a)	(Glossary): a word or phrase listed in the Glossary in Chapter 11 has the has the meaning given in the Glossary;
(b)	(day): a day means a calendar day;
(c)	(business day): a business day means a day that is not a Saturday, Sunday or a public holiday throughout Western Australia;
(d)	(singular and plural): the singular includes the plural and the plural includes the singular;
(e)	(gender): a reference to a gender includes any gender;
(f)	(headings): headings (including those in brackets at the beginning of paragraphs) are for convenience only and do not affect the interpretation of these Market Rules;
(g)	(persons): a reference to a person includes an individual, a firm, a body corporate, a partnership, a joint venture, an unincorporated body or association, or any government agency;
(h)	(things): a reference to any thing (including any amount) is a reference to the whole and each part of it;
(i)	(clauses etc): a reference to a clause, chapter, annexure or schedule is a reference to a clause or chapter in or annexure or schedule to the Market Rules;
(j)	(statutes etc): a reference to a statute, ordinance, code or other law includes regulations and other instruments under it and consolidations, amendments, re-enactments or replacements of any of them;
(k)	(variations): a reference to a document (including the Market Rules) includes any variation or replacement of it;
(l)	(other parts of speech): other parts of speech and grammatical forms of a word or phrase defined in the Glossary in chapter 11 have a corresponding meaning;
(m)	(appointments): where these Market Rules confer a power on a person to make an appointment to a position, the person also has the power:

i.           to specify the period for which any person appointed in exercise of the power (“appointee”) holds the position;

ii.          to remove or suspend an appointee and to reappoint or reinstate an appointee; and

5 October 2004 GOVERNMENT GAZETTE, WA 4335

iii.         where an appointee is suspended or is unable, or expected to become unable, for any other cause to perform the functions of the position, to appoint a person to act temporarily in place of the appointee during

the period of suspension or other inability;

(n)	(amendments): if the IMO or System Management has the power to make, prescribe, determine, compile, establish or develop a document, instrument, matter or thing, then the IMO or System Management also has the power to amend, replace or revoke the whole or part of that document, instrument,
matter or thing exercisable in like manner and subject to like conditions (if any);
(o)	(functions): “function” includes function, power, duty, responsibility and authority;
(p)	(include or including): the words “include” or “including” are not used as, nor are they to be interpreted as, words of limitation, and, when introducing an example, do not limit the meaning of the words to which the example

relates;

(q)	(Loss Factor adjusted): In these Market Rules, “Loss Factor adjusted” in respect of a quantity of electricity means that the quantity must be multiplied by any applicable Loss Factor; and
(r)	(Headings and comments): headings and comments appearing in boxes in these Market Rules (other than the Refund Table in clause 4.26) are for convenience only and do not affect the interpretation of these Market Rules.

1.5.

Subservient Documents

1.5.1.

The following documents are subservient to the rules:

(a)	Market Procedures; and
(b)	any other document or instrument issued, made or given by the IMO under the Market Rules.

Forms required for the submission of information to the IMO and System Management should be part of Market Procedures.

1.5.2.

In the event of conflict between the Market Rules and other documents, then the
order of precedence is to be, in the following order:

(a)	the Electricity Industry Act;
(b)	the Regulations;
(c)	the Market Rules;
(d)	the Market Procedures; and
(e)	any other document or instrument issued, made or given by the IMO under the Market Rules.

1.5.3. If a provision of a document which is higher in the order of precedence (in this clause called the “higher provision”) is inconsistent with a provision of a document which is lower in the order of precedence, then the higher provision prevails, but only to the extent of the

inconsistency.

1.6. Notices

1.6.1. The IMO must develop a Market Procedure which sets out the method by which
notices and communications required under, contemplated by or relating to, these
Market Rules are to be given to or by the IMO.

1.7. Publication

1.7.1. Where the IMO is required by these Market Rules to publish or release a document
or information, then the IMO must make that document or information available on
the Market Web Site, in a place which is generally accessible by members of the
class of persons entitled to access that document or information given the IMO’s
determination of its confidentiality status in accordance with clause 10.2.

Staging

1.8.	Staging of the Market Rules
1.8.1.	Subject to clause 1.8.2, a provision of the Market Rules commences at the time fixed by the Minister.
1.8.2.	Chapter 1, Chapter 4, Chapter 11 and Appendix 8 commence when these Market Rules are made.
1.8.3.	The Minister may fix different times for different provisions of these Market Rules under clause 1.8.1.
1.8.4.	The Minister must publish notice of the commencement time fixed for a provision under clause 1.8.1 in the Government Gazette.
1.8.5.	Until such time as clauses 2.4 to 2.11 take effect, the Minister may develop, maintain and make Amending Rules, and develop, formulate and publish Market Procedures in accordance with the Regulations.
1.8.6.	To avoid doubt, and without limiting the foregoing, where a word or phrase listed in the Glossary in Chapter 11 is defined by reference to a provision of these Market Rules, regard should be had to that provision for the purposes of determining the meaning of that word or phrase, even though the provision has not yet commenced.

The following table is intended to provide a very provisional non-binding indication as to when rules might be brought into effect. The table only considers second level headings, whereas some lower level clauses may have further timing restrictions placed on them.

This table is provided only for ease of reference and does not affect the time from which a provision of the Market Rules becomes effective in accordance with clause 1.8.

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Chapter	Date	Clause
1 - Introduction	5 Oct 2004	Entire Chapter
2 - Administration	4 Jan 2005	2.1, 2.2, 2.12 2.17 to 2.23 2.28 to 2.34
1 Jul 2006	Entire Chapter
1 Jul 2006	Entire Chapter
3 – Power System Security and	5 Oct 2004	Entire Chapter
Reliability
4 – Reserve Capacity Rules	1 Jul 2006	Entire Chapter
5 – Network Control Service	1 Jul 2006	Entire Chapter
Procurement
6 – The Energy Market	1 Jul 2006	Entire Chapter
7 - Dispatch	1 Jul 2006	Entire Chapter
8 – Wholesale Market Metering	1 Jul 2006	Entire Chapter
9 - Settlement	4 Jan 2005	Parts of Chapter
10- Release of Market	1 Jul 2006	Entire Chapter
Information
5 Oct 2004	Entire Chapter

1.9.6.	The IMO may treat any expression of interest, submission, application, approval, statement or document (“the application”) made or given by a person to the IMO or the Minister in anticipation of a provision of these Market Rules commencing as having been made to the IMO after the relevant provision commences and the IMO may take action under these Market Rules on the basis of the application or taking into account the application.
1.9.7.	For the purposes of Regulation 4(3), Appendix 8 of these Market Rules has effect instead of the top-up and spill rules.
1.9.8.	Where a word or a phrase is defined in Appendix 8 that word or phrase is defined for the purposes of Appendix 8 only.
1.9.9.	Where in Appendix 8 there is a reference to a rule, a clause, a chapter or an appendix those references are confined to Appendix 8 only.

1.9.10. Appendix 8 ceases to have effect at Energy Market Commencement.

2. Administration
Functions and Governance

2.1.

Independent Market Operator

2.1.1.

The Independent Market Operator, or IMO, is established under the Electricity
Industry (Independent Market Operator) Regulations 2004.

2.1.2.

The functions of the IMO are:

(a)	to administer these Market Rules;
(b)	to operate the Reserve Capacity mechanism, the Short Term Energy Market and the balancing process;
(c)	to settle such transactions as it is required to under these Market Rules;
(d)	to carry out a Long Term PASA study and to publish the Statement of Opportunities Report;
(e)	to administer tender processes for Network Control Services where required by these Market Rules and to enter into Network Control Service Contracts;
(f)	to process applications for participation, and for the registration, de- registration and transfer of facilities;
(g)	to release information required to be released by these Market Rules;
(h)	to publish information required to be published by these Market Rules;
(i)	to develop amendments to these Market Rules and replacements for them;
(j)	to develop Market Procedures, and amendments and replacements for them, where required by these Market Rules;

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(k)	to make available copies of the Market Rules and Market Procedures, as are in force at the relevant time;
(l)	to monitor other Rule Participants’ compliance with the Market Rules, to investigate potential breaches of the Market Rules, and if thought appropriate, initiate enforcement action under the Regulations and these Market Rules;
(m)	to support the Economic Regulation Authority in its market surveillance role, including providing any market related information required by the Economic Regulation Authority;
(n)	to support the Economic Regulation Authority in its role of monitoring market effectiveness, including providing any market related information required by the Economic Regulation Authority; and
(o)	to carry out any other functions conferred, and perform any obligations imposed, on it under these Market Rules.

2.1.3.

The IMO may delegate any of its functions under the Market Rules (other than the
power to do the things indicated as not able to be delegated in regulation 17(l) of the
Regulations) to a person or body of persons that is, in the IMO’s opinion, competent
to exercise the relevant functions. A function performed by a delegate is to be taken
to be performed by the IMO. A delegate performing a function under this clause
2.1.3 is to be taken to do so in accordance with the terms of the delegation unless
the contrary is shown.

2.2.

System Management

2.2.1.

Western Power, acting through the segregated business unit known as System
Management, has the function of operating the SWIS in a secure and reliable
manner for the purposes of regulation 13(1) of the Regulations.

2.2.2.

The other functions of System Management in relation to the Wholesale Energy
Market are:

(a)	to procure adequate Ancillary Services where Western Power cannot meet the Ancillary Service Requirements;
(b)	to assist the IMO in the processing of applications for participation and for the registration, de-registration and transfer of facilities;
(c)	to develop Market Procedures, and amendments and replacements for them, where required by these Market Rules;
(d)	to release information required to be released by these Market Rules;
(e)	to monitor Rule Participants’ compliance with Market Rules relating to dispatch and Power System Security and Power System Reliability; and
(f)	to carry out any other functions or responsibilities conferred, and perform any obligations imposed, on it under these Market Rules.

2.2.3.

System Management may delegate any of its functions under the Market Rules
(other than the power to do the things indicated as not able to be delegated in the
Regulations) to a person or body of persons that is, in System Management’s

System Management will be a ring-fenced business unit of Western Power and will report to the Western Power Board with regard to performance against budgets and objectives, including its compliance with the Market Rules. The Board will in turn report to the Shareholding Minister. System Management’s compliance with the rules will be monitored by the IMO and breaches reported to the ERB, and the IMO will report on System Management’s performance to the Minister.

2.3.

The Market Advisory Committee

2.3.1.

The Market Advisory Committee is a committee of industry representatives convened
by the IMO:

(a)	to advise the IMO regarding Rule Change Proposals;
(b)	to advise the IMO and System Management regarding Procedure Change Proposals; and
(c)	to advise the IMO regarding market operation and SWIS operation matters.

Note that the MAC does not vote on issues – instead it is a forum for views to be heard and advice to be offered to the IMO on rule and procedure changes and more generally on the operation of the market.

2.3.2.

The IMO must develop and publish a constitution for the Market Advisory Committee
detailing:

(a)	the process for convening the Market Advisory Committee;
(b)	the terms of reference of the Market Advisory Committee;
(c)	the membership terms of Market Advisory Committee members;
(d)	the process for appointing and replacing Market Advisory Committee members by the IMO;
(e)	the conduct of Market Advisory Committee meetings;
(f)	the role of the Market Advisory Committee secretariat; and
(g)	interaction between the Market Advisory Committee and the IMO.

2.3.3.

The constitution of the Market Advisory Committee must be consistent with the
Market Rules.

2.3.4.

The IMO must invite public submissions when developing or amending the
constitution of the Market Advisory Committee.

2.3.5.

Subject to clause 2.3.13., the Market Advisory Committee must comprise:

(a) three members representing generators, of whom one must represent Western Power;

5 October 2004 GOVERNMENT GAZETTE, WA 4341

(b)	one member representing Contestable Customers;
(c)	at least one and not more than two members representing Network Operators, of whom one must represent Western Power;
(d)	three members representing retailers, of whom one must represent Western Power;
(e)	one member nominated by the Minister to represent small consumers;
(f)	one member representing System Management;
(g)	one member representing the IMO; and
(h)	a chairperson of the Market Advisory Committee, who must be a representative of the IMO.

2.3.6.	The Minister may appoint a representative to attend Market Advisory Committee meetings as an observer.
2.3.7.	The Economic Regulation Authority may appoint a representative to attend Market Advisory Committee meetings as an observer.
2.3.8.	The IMO may appoint and remove members of the Market Advisory Committee.
2.3.9.	The IMO must annually review the composition of the Market Advisory Committee and may remove and appoint members following the review.

2.3.10. When appointing and removing members of the Market Advisory Committee, the IMO

must consult with, and take nominations from, industry groups that it considers
relevant to the wholesale electricity market, and, if practicable, must choose
members from persons nominated.

2.3.11. The IMO may remove a member of the Market Advisory Committee at any time in the following circumstances:

(a)	the person becomes an undischarged bankrupt;
(b)	the person becomes of unsound mind or his or her estate is liable to be dealt with in any way under law relating to mental health; or
(c)	an event specified for this purpose in the constitution for the Market Advisory Committee occurs; or
(d)	in the IMO’s opinion the person no longer represents the person or class of persons that they were appointed to represent in accordance with clause 2.3.5.

2.3.12. A member of the Market Advisory Committee may resign by giving notice to the IMO
in writing. 2.3.13. Where a position on the Market Advisory Committee is vacant at any time, the IMO

must make reasonable endeavours to appoint a person to fill the position, but the
Market Advisory Committee may continue to perform its functions under this clause
2.3 despite any vacancy.

2.3.14. The IMO must provide a secretariat for the Market Advisory Committee. The

secretariat must:

(a)	schedule meetings and maintain the diary of the Market Advisory Committee; and
(b)	prepare and publish the minutes of each meeting of the Market Advisory Committee.

2.3.15. The secretariat must convene the Market Advisory Committee:

(a)	on any occasion where these Market Rules require a meeting to discuss a Rule Change Proposal or Procedure Change Proposal;
(b)	not less than once every six months so as to raise and discuss issues with respect to the operation of the market; and
(c)	on any occasion when two or more members of the Market Advisory Committee have informed the secretariat in writing that they wish to bring a matter regarding market operation or the operation of these Market Rules before the Market Advisory Committee for discussion.

2.3.16. Subject to clause 10.2.4, the IMO must provide the members of the Market Advisory

Committee any information in its possession that is pertinent to the issues being addressed by the Market Advisory Committee.

2.3.17. The Market Advisory Committee may nominate a Working Group comprised of

Representatives of Rule Participants to assist the Market Advisory Committee in advising the IMO.

Market Documents

2.4. Market Rules

2.4.1. The IMO:

(a)	is responsible for maintaining the Market Rules; and
(b)	is responsible for ensuring the development of amendments of, and replacements for, the Market Rules; and
(c)	may make amending rules (as defined in the Regulations) (“Amending Rules”) in accordance with this Chapter.

2.4.2.

The IMO must not make Amending Rules unless it is satisfied that the Market Rules,
as proposed to be amended or replaced, are consistent with the Wholesale Market
Objectives.

2.4.3.

In deciding whether or not to make Amending Rules, the IMO must have regard to
the following:

(a)	any applicable policy direction given to the IMO under clause 2.5.2;
(b)	the practicality and cost of implementing the Rule Change Proposal;
(c)	the views expressed in any submissions on the Rule Change Proposal;

5 October 2004 GOVERNMENT GAZETTE, WA 4343

(d)	the views expressed by the Market Advisory Committee where the Market Advisory Committee met to consider the Rule Change Proposal; and
(e)	any technical studies that the IMO considers are necessary to assist in assessing the Rule Change Proposal.

2.4.4.

The IMO must maintain on the Market Web Site a Rules Change Proposal form
which must include:

(a)	contact details for proposing rule changes; and
(b)	information that must be provided in proposing a change, including:

i.         the name of the person submitting the Rule Change Proposal, and where relevant, details of the organisation that person represents;

ii.         the issue to be addressed;

iii.        the degree of urgency of the proposed change;

iv.        any proposed specific changes to particular rules;

v.        a description of how the rule change would allow the Market Rules to better address the Wholesale Market Objectives; and

vi.        any identifiable costs and benefits of the change.

2.5.	Rule Change Proposals
2.5.1.	Any person (including the IMO) may make a Rule Change Proposal by completing a Rule Change Proposal form. A person other than the IMO must submit the completed Rule Change Proposal form to the IMO.

This includes Rule Participants, the IMO, System Management, the public etc

2.5.2.

The Minister may give a policy direction to the IMO with respect to the development of the market. A policy direction must not be inconsistent with the Wholesale Market Objectives. Before giving a policy direction, the Minister may provide a draft of the

proposed policy direction to the IMO and seek the IMO’s views on it.

2.5.3.

If the Minister gives a policy direction, the IMO must develop one or more Rule
Change Proposals implementing the policy direction and progress it using the rule
change process in this clause 2.5 and clauses 2.6 to 2.8.

2.5.4.

Where the IMO considers that a change to the Market Rules is required to maintain
consistency with any applicable law or regulation or the Wholesale Market
Objectives, the IMO is responsible for developing an appropriate Rule Change
Proposal.

2.5.5.

Where necessary, the IMO may contact the person submitting a Rule Change
Proposal and request clarification of any aspect of the Rule Change Proposal. Any
clarification received is to be deemed to be part of the Rule Change Proposal.

2.5.6.

Within five Business Days of the later of:

(a) receiving the Rule Change Proposal; and

(b) any clarification under clause 2.5.5,

the IMO must notify the person who submitted the Rule Change Proposal whether or
not the IMO will progress the Rule Change Proposal any further.

2.5.7.

When it has developed a Rule Change Proposal, or within seven Business Days of
receiving a Rule Change Proposal under clause 2.5.1, the IMO must publish notice of
the Rule Change Proposal on the Market Website. The notice must include:

(a)	the date that the Rule Change Proposal was submitted, if applicable;
(b)	the name, and where relevant, the organisation, of the person who made the Rule Change Proposal;
(c)	details of the Rule Change Proposal, including relevant references to clauses of the Market Rules and any proposed specific changes to those clauses;
(d)	the description of how the rule change would allow the Market Rules to better address the Wholesale Market Objectives given by the person submitting the proposed rule change;
(e)	whether the Rule Change Proposal will be progressed and the reason why the Rule Change Proposal will or will not be progressed; and
(f)	if the Rule Change Proposal will be progressed further:

i.         whether the Rule Change Proposal is to be subject to the Fast Track Rule Change Process in accordance with clause 2.5.9 and the reasons for this decision;

ii.          if the Rule Change Proposal is subject to the Fast Track Rule Change process, and the Rule Change Proposal did not include proposed specific changes to clauses, the IMO’s proposed Amending Rules to implement the Rule Change Proposal; and

iii.        if the Rule Change is not subject to the Fast Track Rule Change process, a call for submissions in relation to the Rule Change Proposal. The due date for submissions must be:

1.	six weeks after the notification or, if that day is not a Business Day, then the next Business Day following that six week period; or
2.	if a longer timeframe is determined in accordance with clause 2.5.10, at a time that is consistent with that timeframe

2.5.8.

Where a Rule Change Proposal that will be progressed relates to a Protected
Provision the IMO must notify the Minister at the same time as it gives the notice
described in clause 2.5.7.

2.5.9.

The IMO may subject a Rule Change Proposal to the Fast Track Rule Change
Process if, in its opinion, the Rule Change Proposal:

(a)	is of a minor or procedural nature; or
(b)	is required to correct a manifest error; or

5 October 2004 GOVERNMENT GAZETTE, WA 4345

(c) is urgently required and is essential for the safe, effective and reliable operation of the market or the SWIS.

2.5.10. Subject to clause 2.5.12, the IMO may at any time after deciding to progress a Rule Change Proposal decide to extend the normal timeframe for processing Rule Change periods under clauses 2.6 or 2.7 in respect of the Rule Change Proposal and publish details of the modified times and time periods.

2.5.11. If a Rule Change Proposal was subject to the Fast Track Rule Change Process, and the IMO decides to extend the timeframe, it must either:

(a)	extend the timeframe by no more than 15 Business Days; or
(b)	reclassify the Rule Change Proposal as not being subject to the Fast Track Rule Change Process, and must progress it in accordance with clause 2.7.

2.5.12. The IMO must publish a notice of an extension determined in accordance with clause 2.5.10, and must update any information already published in accordance with clause 2.5.7(f).

2.5.13. A notice of extension must include:

(a)	the reasons for the proposed extension;
(b)	the views of any Rule Participants consulted on the extension;
(c)	the proposed length of any extension; and
(d)	the proposed work program.

2.5.14. A Rule Change Proposal that the IMO decides is subject to the Fast Track Rule

Change Process is to be progressed in accordance with clause 2.6 and clause 2.7 does not apply.

2.5.15. A Rule Change Proposal that the IMO decides is not subject to the Fast Track Rule Change Process is to be progressed in accordance with clause 2.7 and clause 2.6 does not apply.

2.6.	Fast Track Rule Change Process
2.6.1.	Within five Business Days of publishing the notice referred to in clause 2.5.7, the IMO must notify those Rule Participants that it considers have an interest in the Rule Change Proposal of its intention to consult with them concerning the Rule Change Proposal.

Note that the IMO has already published notice of the Rule Change Proposal in accordance with clause 2.5.7, so participants other than those notified by the IMO under clause 2.6.1 can also request that the IMO consult with them via clause 2.6.2.

2.6.2.

Within five Business Days of publishing the notice referred to in clause 2.5.7, a Rule
Participant may notify the IMO that they wish to be consulted concerning the Rule
Change Proposal.

2.6.3.

Within 15 Business Days of publishing the notice referred to in clause 2.5.7, the IMO
must have completed such consultation as the IMO considers appropriate in the
circumstances with the Rule Participants described in clauses 2.6.1 and 2.6.2.

2.6.4.

Within 20 Business Days of publishing the notice referred to in clause 2.5.7, the IMO
must prepare and publish a Final Rule Change Report containing:

(a)	the information in the notice of the Rule Change Proposal under clause 2.5.7;
(b)	any analysis of the Rule Change Proposal that the IMO has carried out;
(c)	the identities of Rule Participants that were consulted;
(d)	information on any objections expressed by the Rule Participants consulted, and the IMO’s response to the objections;
(e)	the IMO’s assessment of the Rule Change Proposal in light of clauses 2.4.2 and 2.4.3;
(f)	a decision by the IMO that:

i.           the Rule Change Proposal be accepted in the proposed form; or

ii.          the Rule Change Proposal be accepted in a modified form; or

iii.         the Rule Change Proposal be rejected;

(g)

the IMO’s reasons for the decision; and

(h)

if the IMO decides to make Amending Rules arising from the Rule Change Proposal:

i.	the wording of the Amending Rules; and
ii.	the proposed date and time that the Amending Rules will commence.

2.7.

Standard Rule Change Process

2.7.1.

Any person may make a submission to the IMO relating to a Rule Change Proposal
within the time frame specified under clause 2.5.7(f)(iii).

2.7.2.

Subject to clause 10.2.4, the IMO must release all information submitted under
clause 2.7.1 to the public.

2.7.3.

The IMO may hold public forums or workshops concerning a Rule Change Proposal.

2.7.4.

Within one Business Day after the publication of a notice of a Rule Change Proposal
in accordance with clause 2.5.7, the IMO must notify the members of the Market
Advisory Committee as to whether the IMO considers the Rules Change Proposal to
be significant enough to require convening a meeting of the Market Advisory
Committee.

2.7.5.

The IMO must convene a meeting of the Market Advisory Committee concerning a Rules Change Proposal before the due date for submissions in relation to the Rule Change Proposal if:

(a)	the IMO considers the Rule Change Proposal to be significant; or
(b)	two or more members of the Market Advisory Committee have informed the IMO in writing that they consider that the Rule Change Proposal is significant.

5 October 2004 GOVERNMENT GAZETTE, WA 4347

2.7.6.

Within 20 Business Days following the close of submissions, the IMO must:

(a)	prepare and publish a draft Rule Change Report on the Rule Change Proposal; and
(b)	publish a deadline for further submissions in relation to the Rule Change Proposal, where that deadline must be at least 20 Business Days after the date the deadline is published.

2.7.7.

The draft Rule Change Report must contain:

(a)	the information in the notice of the Rule Change Proposal under clause 2.5.7;
(b)	all submissions received before the due date for submissions, a summary of those submissions, and the IMO’s response to issues raised in those submissions;
(c)	a summary of any public forums or workshops held;
(d)	a summary of the views expressed by the members of the Market Advisory Committee where the Market Advisory Committee met to consider the Rule Change Proposal;
(e)	the IMO’s assessment of the Rule Change Proposal in light of clauses 2.4.2 and 2.4.3;
(f)	a proposal as to whether the Rule Change Proposal should be accepted in the form proposed. The proposal may be that:

i.           the Rule Change Proposal be accepted in the proposed form; or

ii.          the Rule Change Proposal be accepted in a modified form; or

iii.         the Rule Change Proposal be rejected; and

(g)

if the IMO proposes to make Amending Rules arising from the Rule Change Proposal:

i.	the wording of the proposed Amending Rules; and
ii.	a proposed date and time the proposed Amending Rules will commence.

2.7.8.

Within 20 Business Days of the deadline specified under clause 2.7.6(b), the IMO
must prepare and publish a Final Rule Change Report containing:

(a)	the information in the Draft Rule Change Report;
(b)	all submissions received before the deadline for submissions specified in relation to the relevant draft Rule Change Report under clause 2.7.6(b), a summary of those submissions, and the IMO’s response to the issues raised

in those submissions;

(c)

any further analysis or modification to the Rules Change Proposal;

(d)

the IMO’s assessment of the Rule Change Proposal in light of clauses 2.4.2 and 2.4.3;

(e)

a decision by the IMO that:

i.	the Rule Change Proposal be accepted in the proposed form; or
ii.	the Rule Change Proposal be accepted in a modified form; or
iii.	the Rule Change Proposal be rejected;

(f)

the IMO’s reasons for the decision; and

(g)

if the IMO decides to make Amending Rules arising from the Rule Change Proposal:

i.	the wording of the Amending Rules; and
ii.	the proposed date and time that the Amending Rules will commence.

2.8. Review of IMO Rule Amendment Decisions, Ministerial Approval and
Coming into Force of Rule Amendments

It is proposed that Regulations will be made to give the Energy Review Board the powers contemplated by this clause. This clause will reflect those regulations when made.

2.8.1.

A Rule Participant may apply to the Energy Review Board for a Procedural Review of
a decision by the IMO contemplated by clause 2.5.9, 2.6.4(f) or 2.7.8(e) within 10
Business Days of the relevant decision, on the grounds that the IMO has not followed
the rule change process set out in clauses 2.5, 2.6 and 2.7.

2.8.2.

Following an application for a Procedural Review under clause 2.8.1, if the Energy
Review Board finds that the IMO has not followed the rule change process set out in
clauses 2.5, 2.6 and 2.7 the Energy Review Board may set aside the IMO’s decision
and direct the IMO to reconsider the relevant Code Change Proposal in accordance
with the process set out in clauses 2.5, 2.6 and 2.7.

2.8.3.

The IMO must submit a Rule Change Proposal, together with the Final Rule Change Report, to the Minister for approval where Amending Rules in the Final Rule Change Report under clause 2.6.4 or 2.7.8 amend or replace a Protected Provision, or, in the IMO’s opinion, would have the effect of changing the meaning or effect of one or

more Protected Provisions.

2.8.4.

Subject to clause 2.8.6, the Minister must consider the Rule Change Proposal within 20 Business Days and decide whether the Market Rules, as amended or replaced by the proposed Amending Rules, are consistent with the Wholesale Market Objectives.

2.8.5.

Where a Rule Change Proposal is submitted under clause 2.8.3, the Minister may:

(a)	approve the proposed Amending Rules;
(b)	not approve the proposed Amending Rules; or
(c)	send back to the IMO the proposed Amending Rules with any revisions the Minister considers are required to ensure the Market Rules, as amended or replaced by the proposed Amending Rules, are consistent with the Wholesale

Market Objectives.

2.8.6. The Minister may extend the time for a decision on a Rule Change Proposal under
clause 2.8.4 by a further period of up to 20 Business Days by notice to the IMO. The
Minister may extend the time for a decision in respect of a Rule Change Proposal
more than once.

5 October 2004 GOVERNMENT GAZETTE, WA 4349

2.8.7.	The IMO must publish notice of any extension under clause 2.8.6 on the Market Web Site.
2.8.8.	Where the Minister does not make a decision by the original date determined in accordance with clause 2.8.4, or by an extended date determined in accordance with clause 2.8.6, as applicable, then the proposed Amending Rules will be taken to have been approved by the Minister.

This default clause means that the Minister must take explicit action to prevent the rule change.

2.8.9. Where the Minister does not approve the proposed Amending Rules or sends
proposed Amending Rules back to the IMO under clause 2.8.5(c), the Minister must
give reasons, and the IMO must publish notice of the Minister’s decision and the
reasons given by the Minister

2.8.10. Where the Minister sends proposed Amending Rules back to the IMO in accordance with clause 2.8.5(c), the IMO must:

(a)	publish the revised Amending Rules and call for submissions on the revised Amending Rules within 15 Business Days of publication; and
(b)	provide a revised Final Rule Change Report, including any submissions received on the Minister’s revised Amending Rules to the Minister within 25 Business Days and clauses 2.8.4 to this clause 2.8.10 apply to the revised Final Rule Change Report.

2.8.11. Amending Rules are made:

(a)	For Rule Change Proposals to which clause 2.8.3 applies, when the Minister has either approved, or is taken by clause 2.8.8 to have approved, the Amending Rules; and
(b)	For Rule Change Proposals to which clause 2.8.3 does not apply, when the IMO has decided to make the Amending Rules in accordance with clause 2.6.4(h) or clause 2.7.8(g).

2.8.12. Subject to clause 2.8.2, Amending Rules commence at the time and date

determined by the IMO. The IMO must publish notice of the time and date Amending
Rules commence.

2.8.13. The following clauses are Protected Provisions:

Please note that cross references have not been checked and must be checked before publication of the Rules.

(a)	clauses 1.1 to 1.3 and 1.5 to 1.9 ;
(b)	clauses 2.1 to 2.24, 2.28, 2.31.1, 2.31.3, 2.31.5(a), 2.31.6, 2.34.1 and 2.36.1;
(c)	clauses 3.15, 3.18.18 and 3.18.19;
(d)	clauses 4.1.4 to 4.1.12, 4.1.15 to 4.1.19, 4.1.21, 4.1.22, 4.1.24, 4.1.27, 4.5.10, 4.5.11, 4.5.15 to 4.5.20, 4.13.10, 4.13.11, 4.16, 4.24.1, 4.24.2 and 4.24.12;
(e)	clauses 5.2.3, 5.2.7 and 5.5.1;
(f)	clauses 9.16.3, 9.16.4 and 9.20.2; and
(g)	clauses 10.1.1, 10.2.1, 10.3 and 10.4.

2.9.	Market Procedures
2.9.1.	The IMO must manage the development of, amendment of, and replacement for Market Procedures which these Market Rules require be developed by the IMO.
2.9.2.	System Management must manage the development of, amendment of, and replacement for Market Procedures which these Market Rules require be developed by System Management.

2.9.3. Market Procedures

(a)

must:

i.	be developed, amended or replaced in accordance with the process in these Market Rules;
ii.	be consistent with the Wholesale Market Objectives; and
iii.	be consistent with these Market Rules, the Electricity Industry Act and Regulations; and

(b)

may be amended or replaced in accordance with clause 2.10 and must be amended or replaced in accordance with clause 2.10 where a change is required to maintain consistency with Amending Rules.

2.9.4.	The IMO must maintain on the Market Web Site a Procedure Change Submission form.
2.9.5.	The IMO must develop an Administration Procedure setting out the procedure for developing and amending Market Procedures and:
(a) the IMO must follow the Administration Procedure when developing and approving Procedure Change Proposals, except when producing the first version of the Administration Procedure;

The exception for the Administration Procedure is required as it contains the procedure change process itself.

(b)	System Management must follow the Administration Procedure when developing Procedure Change Proposals; and
(c)	Rule Participants involved in the Procedure Change process must follow the Administration Procedure when assisting the IMO or System Management to develop Procedure Change Proposals.

2.9.6. The IMO must comply with Market Procedures applicable to it.

5 October 2004 GOVERNMENT GAZETTE, WA 4351

2.9.7.	System Management must comply with Market Procedures applicable to it.
2.9.8.	A Rule Participant other than the IMO or System Management must comply with Market Procedures applicable to it.

2.10. Procedure Change Process

2.10.1. The IMO or System Management, as applicable, may initiate the Procedure Change Process by developing a Procedure Change Proposal.

2.10.2. Rule Participants may notify the IMO or System Management, as applicable, where

they consider an amendment or replacement of a Market Procedure would be
appropriate.

2.10.3. If an Amending Rule requires the IMO or System Management to develop new

Market Procedures or to amend or replace existing Market Procedures, then the IMO or System Management, as applicable, is responsible for the development of, amendment of or replacement for, Market Procedures so as to comply with the Amending Rule.

2.10.4. Where the Procedure Change Proposal is developed by System Management,

System Management must provide the Procedure Change Proposal to the IMO, and the IMO must publish it.

2.10.5. The IMO must publish Procedure Change Proposals that the IMO develops.

2.10.6. A Procedure Change Proposal must include:

(a)	a proposed Market Procedure or an amendment of or replacement for a Market Procedure , indicating the proposed amended words, or a proposed Market Procedure; and
(b)	the reason for the proposed Market Procedure or an amendment of or replacement for a Market Procedure or proposed Market Procedure.

2.10.7. At the same time as it publishes a Procedure Change Proposal notice, the IMO must

publish a call for submissions on that proposal. The due date for submissions must
be 20 Business Days from the date the call for submissions is published., Any
person may make a submission using a Procedure Change Submission form.

2.10.8. Within one Business Day after the publication of a Procedure Change Proposal

notice in accordance with clause 2.10.4 or 2.10.5, as applicable, the IMO must notify all members of the Market Advisory Committee as to whether the IMO considers the Procedure Change Proposal to be significant enough to require convening the

Market Advisory Committee. 2.10.9. The IMO must convene a meeting of the Market Advisory Committee concerning the

Procedure Change Proposal before the due date for submissions in relation to the

Procedure Change Proposal if:

(a)	the IMO considers the procedure change to be significant; or
(b)	two or more members of the Market Advisory Committee have informed the IMO in writing that they consider that the Procedure Change Proposal is significant.

2.10.10. Following the closing date for submissions, the IMO or System Management, as

applicable, must prepare a Procedure Change Report on the Procedure Change
Proposal.

2.10.11. Where the Procedure Change Report is prepared by System Management, System

Management must provide the Procedure Change Report to the IMO, and the IMO must publish it.

2.10.12. The IMO must publish Procedure Change Reports that the IMO prepares.

2.10.13. The Procedure Change Report must contain:

(a)	the wording of the proposed Market Procedure or amendment of or replacement for the Market Procedure;
(b)	the reason for the proposed Market Procedure or amendment of or replacement for the Market Procedure;
(c)	all submissions received before the due date for submissions, a summary of those submissions, and the response of the IMO or System Management, as applicable, to the issues raised in those submissions;
(d)	a summary of the views expressed by the Market Advisory Committee;
(e)	in the case of a Procedure Change Proposal developed by the IMO, a proposed date and time for the Market Procedure or amendment or replacement to commence, which must, in the IMO’s opinion, allow sufficient time after the date of publication of the Procedure Change Report for Rule Participants to implement changes required by it; and
(f)	in the case of a Procedure Change Proposal developed by System Management, a recommendation for a date and time for the Market Procedure, amendment or replacement to commence which, in System

Management’s opinion, allows sufficient time after the date of publication of the IMO’s approval of the Procedure Change Proposal under clause 2.10.12, for Rule Participants to implement changes required by it.

2.10.14. For Procedure Change Proposals published by System Management, the IMO must within 10 Business Days of the publication of the Procedure Change Report make a decision as to whether to approve the Procedure Change Proposal. The IMO may:

(a)	approve the Procedure Change Proposal; or
(b)	reject the Procedure Change Proposal.

5 October 2004 GOVERNMENT GAZETTE, WA 4353

2.10.15. Where the IMO approves a Procedure Change Proposal from System

Management, it must notify System Management and the IMO must publish, the following information:

(a)	that the Procedure Change Proposal is approved;
(b)	the IMO’s reasons for the decision; and
(c)	a date and time for the Market Procedure, amendment or replacement to commence, which must, in the IMO’s opinion, allow sufficient time after the date of publication of the Procedure Change Report for Rule Participants to implement changes required by it.

2.10.16. Where the IMO rejects a Procedure Change Proposal from System Management:

(a)

the IMO must:

i.	notify System Management; and
ii.	publish the following information:

1.          that the Procedure Change Proposal is rejected; and

2.          the IMO’s reasons for the decision; and

(b)	in the case of a Procedure Change Proposal required by an Amending Rule, System Management must submit a revised Procedure Change Proposal in accordance with clause 2.10 that complies with the Amending Rule and is
acceptable to the IMO. The provisions of clause 2.10 apply to any revised Procedure Change as if it were a new Procedure Change Proposal by System Management.

Where the Procedure Change Proposal was not required by a Rule Amendment , then
System Management has discretion as to whether it wants to revise and resubmit the

Procedure Change Proposal or abandon the procedure change.

2.11. Coming into Force of Procedure Amendments

2.11.1. A Rule Participant may apply to the Energy Review Board for a Procedural Review of

a decision by the IMO or System Management contemplated by clause 2.10.13 or
2.10.14 within 10 Business Days of the decision, on the grounds that the IMO or
System Management has not followed the process set out in clause 2.10 or the
Administration Procedure.

2.11.2. Following an application for a Procedural Review under clause 2.11.1, if the Energy

Review Board finds that the IMO or System Management has not followed the
process set out in clause 2.10 or the Administration Procedure, the Energy Review
Board may set aside the IMO’s decision or System Management’s decision and
direct the IMO or System Management to reconsider the relevant Procedure Change
Proposal in accordance with clause 2.10 and the Administration Procedure.

2.11.3. Subject to clauses 2.11.2 and 2.11.4, a Market Procedure or an amendment of or

replacement for a Market Procedure commences at the time and date specified
under clause 2.10.13(e) or 2.10.15(c), as applicable.

2.11.4. If at any time, the IMO considers that Rule Participants will not have sufficient time to implement any necessary changes required by the Market Procedure, amendment or replacement , the IMO may extend the time and date when that Market Procedure,

amendment or replacement commences by publishing notice of the revised time and date when the amendment of or replacement for that Market Procedure commences.

Monitoring, Enforcement and Audit
2.12. Standard of Performance

2.12.1. With the exception of the obligations listed in clause 2.12.2, where the IMO has an obligation under these Market Rules to do something:

(a) that obligation is limited to a requirement for the IMO to use reasonable endeavours consistent with these Market Rules, including to give such directions or instructions as are within its power, to comply with that

obligation; and

(b) if the IMO fails to do that thing notwithstanding the use of the IMO’s reasonable endeavours, the IMO will be taken not to have breached the obligation.

2.12.2. Clause 2.12.1 does not apply to:

(a)	the obligations of the IMO under clauses 2.18 to 2.20;
(b)	the obligations of the IMO in relation to the registration of Rule Participants and Facilities in clauses 2.28 to 2.32;
(c)	subject to clause 9.24, any payment obligations of the IMO under these Market Rules.

2.12.3. With the exception of the obligations listed in clause 2.12.4, where System

Management has an obligation under these Market Rules to do something:

(a)	that obligation is limited to a requirement for System Management to use reasonable endeavours consistent with these Market Rules, including to give such directions or instructions as are within its power, to comply with that obligation; and
(b)	if System Management fails to do that thing notwithstanding the use of System Management’s reasonable endeavours, System Management will be taken not to have breached the obligation.

2.12.4. Clause 2.12.3 does not apply to the obligations of System Management under
clauses 2.18 to 2.20. 2.12.5. A reference in this clause 2.12 to an obligation to do something includes an

obligation to do or not do any act, matter or thing, to achieve any outcome, to
maintain any state of affairs or to ensure that any other person does or does not do
any act, matter or thing.

5 October 2004 GOVERNMENT GAZETTE, WA 4355

2.13. Market Rule Compliance Monitoring and Enforcement

The IMO monitors participants for Rule and Procedure compliance. System Management also monitors participants, but only for compliance with a very restricted set of clauses relating to standing data, system Security and Reliability and dispatch compliance. Participants can also report suspected breaches to the IMO.

The IMO investigates potential breaches, and then, in the case of Category A breaches (less important), makes a decision itself as to whether a breach has occurred, and may impose a penalty up to a maximum set in the regulations. In the case of more serious breaches it investigates and brings the matter to the ERB who make a decision.

Participants may also report alleged IMO rule breaches to the body nominated by the consideration.

2.13.1. The Minister may from time to time appoint a person to be responsible for investigating alleged breaches by the IMO of the Market Rules and Market Procedures.

2.13.2. The IMO must monitor other Rule Participants’ behaviour for compliance with the
Market Rules and Market Procedures in accordance with the Monitoring Protocol.

2.13.3. The IMO must ensure it has processes and systems in place to allow it to monitor

Rule Participants’ behaviour for compliance with the Market Rules and Market
Procedures in accordance with the Monitoring Protocol.

Note that Rule Participants includes the Network Business Unit of Western Power and
System Management

2.13.4. A Rule Participant may inform the IMO in writing if it considers that it or another Rule Participant has breached the Market Rules or a Market Procedure, and may provide evidence of that breach.

2.13.5. A Rule Participant may inform the person referred to in clause 2.13.1 in writing if it

considers that the IMO has breached the Market Rules or a Market Procedure, and
may provide evidence of that breach.

2.13.6. System Management must monitor Rule Participants’ behaviour for compliance with the provisions of the Market Rules referred to in clause 2.13.9 and Market any alleged breaches of those provisions or Market Procedures to the IMO, in accordance with the Monitoring and Reporting Protocol.

2.13.7. System Management must ensure it has processes and systems in place to allow it to monitor Rule Participants’ behaviour in accordance with clause 2.13.6.

2.13.8. If System Management becomes aware of an alleged breach of the Market Rules or Market Procedures as a result of its monitoring activities, then it must:

(a)	record the alleged breach of the Market Rules or Market Procedures; and
(b)	notify the IMO of the alleged breach in accordance with clause 2.13.4 or, in the case of an alleged breach by the IMO, notify the person referred to in clause 2.13.1 in accordance with clause 2.13.5.

2.13.9. System Management must monitor Rule Participants for breaches of the following

clauses:

Please note that cross references have not been checked and must be checked before publication of the Rules.

(a) clauses 2.34.2 and 2.34.3;

Ensuring standing data is accurate.

(b) clauses 3.4.6 and 3.4.8;

Assisting System Management when the power system is in a High-Risk Operating State

(c) clauses 3.5.8 and 3.5.10;

Assisting System Management when the power system is in an Emergency Operating State

(d) clauses 3.6.5 and 3.6.6;

Network Operators implementing under frequency load shedding plans and complying with manual disconnection instructions from System Management

(e) clauses 3.16.4 and 3.16.7;

Rule Participants provide data for MT PASA

(f) clauses 3.17.5 and 3.17.6;

Rule Participants provide data for ST PASA

(g) clauses 3.18.2(f);

Rule Participants comply with outage scheduling and approval process

(h) clause 4.10.2, where System Management is instructed by the IMO under clause 4.25.13;

Maintaining on-site fuel storage were required by Reserve Capacity obligations

(i)          clause 7.7.6; and

Market Participants acknowledge receipt of Dispatch Instructions.

(j) clauses 7.10.1, 7.10.3 and 7.10.6.

Market Participants follow Resource Plans and Dispatch Instructions.

5 October 2004 GOVERNMENT GAZETTE, WA 4357

(k) clause 7.11.7.

Market Participants and Network Operators comply with directions in Dispatch Advisories.

2.13.10. If the IMO becomes aware of an alleged breach of the Market Rules or the Market Procedures, then it must:

(a)

record the alleged breach;

(b)

investigate the alleged breach;

(c)

where it reasonably believes a breach of the Market Rules or Market Procedures has taken place, issue a warning to the Rule Participant to rectify the alleged breach. The warning must:

i.	identify the clause or clauses of the Market Rules or the Market Procedures that the IMO believes has been, or are being, breached;
ii.	describe the behaviour that comprises the alleged breach;
iii.	request an explanation; and
iv.	request that the alleged breach be rectified and a time (which the IMO considers reasonable) by which the alleged breach should be rectified; and

(d)

record the response of the Rule Participant to the warning.

2.13.11. If the IMO becomes aware of an alleged breach of the Market Rules or the Market

Procedures, then it may meet with the relevant Rule Participant on one or more occasions to discuss the alleged breach and possible actions to rectify the alleged breach.

2.13.12. As part of an investigation into alleged breaches of the Market Rules or Market Procedures, the IMO may:

(a)	require information and records from Rule Participants; and
(b)	conduct an inspection of a Rule Participant’s equipment.

2.13.13. Rule Participants must cooperate with an investigation into an alleged breach of the Market Rules or Market Procedures, including:

(a)	providing the IMO with information requested under clause 2.13.12 relating to the alleged breach in a timely manner; and
(b)	allowing reasonable access to equipment for the purpose of an inspection carried on under clause 2.13.12.

2.13.14. Where a Rule Participant does not comply with clause 2.13.13, the IMO may

appoint a person to investigate the matter and provide a report or such other
documentation as the IMO may require. If the IMO does so, then:

(a) the Rule Participant must assist the person to undertake the investigation and prepare the report or other documentation; and

Regulations will be made at a later stage dealing with the enforcement arrangements described in the following clauses.

2.13.15. Where the alleged breach relates to a Category A Market Rule (as determined in

accordance with the Regulations) and the IMO is not the Rule Participant that is alleged to have breached the Market Rules, the IMO must make a decision as to whether a breach has occurred.

2.13.16. The IMO may:

(a)

decide a breach has taken place in which case the IMO may issue a penalty notice in accordance with the Regulations; or

(b)

decide a breach has not taken place and notify:

i.	the Rule Participant that is alleged to have breached the Market Rules; and
ii.	where a Rule Participant notified the IMO in accordance with clause 2.13.4, that Rule Participant,

of its decision.

2.13.17. Where the IMO issues a penalty notice under clause 2.13.16(a), the Rule

Participants that received the penalty notice may seek a review of that decision by the Energy Review Board in accordance with the Regulations.

2.13.18. Where:

(a)	the alleged breach relates to a Category B or Category C Market Rule (as determined in accordance with the Regulations); and
(b)	following the investigation referred to in clause 2.13.10(b), the IMO reasonably believes that a breach of the Market Rules has taken place,

the IMO may bring proceedings before the Energy Review Board.

2.13.19. Where the person referred to in clause 2.13.1 receives notice of an alleged breach by the IMO in accordance with clause 2.13.5, the person referred to in clause 2.13.1 must investigate the alleged breach of the Market Rules or Market Procedures, and may require information and records from the IMO.

2.13.20. The IMO must cooperate with an investigation referred to in clause 2.13.19.

2.13.21. Following the investigation referred to in clause 2.13.19, where the person referred

to in clause 2.13.1 reasonably believes a breach of the Market Rules or Market

Procedures has taken place it:

(a) may issue a warning to the IMO to rectify the alleged breach. The warning

must :

i. identify the clauses of the Market Rules or the Market Procedures that the person referred to in clause 2.13.1 considers have been breached;

5 October 2004 GOVERNMENT GAZETTE, WA 4359

ii.         describe the behaviour that comprises the alleged breach;

iii.        request an explanation; and

iv.        request that the alleged breach be rectified and a time (which the person referred to in clause 2.13.1 considers reasonable) by which the alleged breach should be rectified; and

(b) may meet with the IMO on one or more occasions to discuss the alleged breach and possible actions to rectify the alleged breach.

2.13.22. Where the person referred to in clause 2.13.1 considers that the alleged breach

has not been rectified within the time set out in accordance with clause 2.13.21(a)(iv)
it may bring proceedings before the Energy Review Board.

2.13.23. The orders that the Energy Review Board may make for a breach of the Market

Rules and the procedures for the operation of the Energy Review Board are set out in the Regulations.

2.13.24. The IMO may direct a Rule Participant to do or to refrain from doing any thing that

the IMO thinks necessary or desirable to give effect or to assist in giving effect to any
order of the Energy Review Board.

2.13.25. A Rule Participant must comply with a direction of the IMO given under clause

2.13.24.

2.13.26. The IMO must release a report at least once every six months setting out a summary for the preceding six months of:

(a)	proceedings that have been brought before the Energy Review Board;
(b)	findings of the Energy Review Board on matters referred to them;
(c)	orders made by the Energy Review Board; and
(d)	civil penalties imposed by the IMO under clause 2.13.16(a), where these have not been set aside by the Energy Review Board.

2.13.27. In considering the circulation of the report under clause 2.13.26 and 2.13.28, the IMO must have regard to the Wholesale Market Objectives.

2.13.28. In addition to the regular publication described in clause 2.13.26, the IMO may release a report on any one or more matters where the IMO has made a decision under clause 2.13.16(a) or which have been referred to the Energy Review Board, the findings of the IMO and the Energy Review Board, as applicable, on those

matters and any sanctions imposed by the IMO or the Energy Review Board in
relation to those matters.

2.13.29. No Rule Participant or former Rule Participant is entitled to make any claim against the IMO for any loss or damage incurred by the Rule Participant from the publication of any information pursuant to clauses 2.13.26 or 2.13.28 if the publication was done in good faith. No action or other proceeding will be maintainable by the person or

Rule Participant referred to in the publication on behalf of the IMO or any person publishing or circulating the publication on behalf of the IMO and this clause operates as leave for any such publication except where the publication is not done in good faith.

2.13.30. Claims for confidentiality of information which may be published under clauses

2.13.26 or 2.13.28 must be dealt with in accordance with the provisions for reporting
information in clause 10.2.

2.13.31. The IMO must, and is entitled to, provide the reports referred to in clauses 2.13.26

or 2.13.28 to all Rule Participants and interested parties. However, the IMO is not
required to provide a report to such a person if the IMO considers it is inappropriate
in the circumstances, including without limitation, where there may be confidentiality
issues.

2.14. Audit

2.14.1. The IMO must appoint one or more Market Auditors that may be used to conduct the audits described in clause 2.14.2 and 2.14.6(b).

2.14.2. The IMO must ensure that the Market Auditor carries out the audits of the matters identified under clause 2.14.3 no less than annually.

2.14.3. The IMO must ensure that the Market Auditor carries out the audits of such matters as the IMO considers appropriate, which must include:

(a)	the compliance of the IMO’s internal procedures and business processes with the Market Rules;
(b)	the IMO’s compliance with the Market Rules and Market Procedures;
(c)	the IMO’s market software systems and processes for software management.

2.14.4. The Market Auditor must provide the IMO with a report, and the IMO must within 30 Business Days of receiving the report either:

(a)	accept the report and any recommendations contained in it; or
(b)	prepare a separate report setting out the matters raised in the Market Auditor’s report which the IMO accepts and those which it does not accept and setting out the IMO’s reasons for that view.

2.14.5. The IMO must publish the Market Auditor’s report and any report it prepared under
clause 2.14.4(b) within 30 Business Days of receiving the Market Auditor’s report.

2.14.6. In accordance with the Monitoring Protocol, the IMO must at least annually, and may more frequently where it reasonably considers that System Management may not be complying with the Market Rules and Market Procedures:

(a)	require System Management to demonstrate compliance with the Market Rules and Market Procedures by providing such records as are required to be kept under these Market Rules or any Market Procedure; or
(b)	subject System Management to an audit by the Market Auditor to verify compliance with the Market Rules and Market Procedures.

5 October 2004 GOVERNMENT GAZETTE, WA 4361

2.14.7. The IMO must annually provide to the Minister a report on System Management’s compliance with the Market Rules and Market Procedures. The report must contain:

(a)	the results of audits performed under clause 2.14.6(b);
(b)

distribution entry point which commences during the month; and
the variable “n” represents the number of excess periods in respect of
the distribution entry point which commence during the month.

(3)	In this subregulation and subregulation (4) —
(a) the “excess rate” in respect of a distribution exit point for a half hour is equal to —

(i)          the average rate (in kW) at which electricity is transferred from the electricity distribution network at the distribution exit point during that half hour;

minus

(ii) the contract maximum demand for the distribution exit point,

but if the result of this calculation is negative, then the excess rate in
respect of the distribution exit point for the half hour is zero;

(b)	if the excess rate in respect of a distribution exit point for a half hour is more than zero, then an excess demand period in respect of the distribution exit point commences at the start of that half hour, except if that half hour already falls within an excess demand period in respect of the distribution exit point; and
(c)	each excess demand period in respect of a distribution exit point includes 336 half hours.

(4) If an excess demand period in respect of a user’s distribution exit point
commences during a month, then the excess network usage charge payable
by the user in respect of the distribution exit point for the month is determined
by applying the following formula:

i = n

E i

EUNC	=	∑	(
CMD

x UNC x EF)

i = 1

where —

EUNC (in $) is the excess use of network charge in respect of the
distribution exit point for the month;
Ei (in kW) is the highest excess rate for any of the half hours which fall
within excess demand period i;
CMD (in kW) is the contract maximum demand for the distribution exit
point;
EF is the excess network usage factor set out in the distribution price
list for the financial year in which the month falls;
UNC (in $) is the use of network charge in respect of the distribution
exit point for the month;
the variable “i” represents an excess demand period in respect of the
distribution exit point which commences during the month; and
the variable “n” represents the number of excess demand periods in
respect of the distribution exit point which commence during the
month.

27.       Other consequences of being out of balance

(1)	For the purposes of this regulation, a user is materially out of balance in respect of a distribution access agreement for a half hour if its residual imbalance is not zero.
(2)	If Western Power becomes aware that —

(a)	a user (other than Western Power) is materially out of balance in respect of one of its distribution access agreements for a period; and
(b)	as a result, the operation of the electricity distribution network or the electricity transmission network is likely to be materially adversely affected or persons with electrical installations connected to the electricity distribution network or the electricity transmission network are likely to be materially adversely affected,

then, subject to subregulation (3), the market service provider may interrupt or
curtail the transfer of electricity to or from one or more of the group of
connections in respect of that distribution access agreement in order to

remove or reduce that material adverse effect.

(3)	Western Power must give notice to a user of its intention to exercise its powers under subregulation (2) in relation to a connection of the user a reasonable time before doing so.
(4)	This regulation does not limit regulations 31 or 32 of the EDR.

”

5 October 2004 GOVERNMENT GAZETTE, WA 4717

Appendix 8: Appendix 5 – Operating Procedures

See rule 10.1.

Communications

A5.1

All communications from a member (other than the market service provider) to the market service provider, and (subject to clause A5.2) all communications from the market service provider to another member, must:

(a)	be by email with an attachment containing the relevant information; and
(b)	be in the format (as to both email and attachment) determined from time to time by the market service provider acting as a reasonable and prudent person and notified to all members; and
(c)	be capable of being reduced to writing by being printed.

A5.2

Communications of a general nature from the market service provider to other
members may be posted on the market service provider’s website, in which case
each member must be notified of the posting by an email under clause A5.1.

A5.3

The market service provider must publish templates for standard communication
requirements including:

(a)	nomination s; and
(b)	renominations.

A5.4

A member other than the market service provider must use the templates published
under clause A5.3.

A5.5

If email services are unavailable for any reason members must use other methods of
communication, in the following priority:

(a)	facsimile services;
(b)	telephone, in which case a written confirmation:

(i)          must be provided within 48 hours of the verbal communication being made; and

(ii)         must include the name of the staff member to whom the communication was made.

A5.6 The market service provider must publish its contact details on its website.

Line losses

A5.7 Where the TUAS market rules refer to an adjustment for line losses, the adjustment
will be calculated in accordance with the member’s access contract by the market
service provider acting as a reasonable and prudent person.

High Price days

A5.8	The market service provider may declare a high price day if it determines as a reasonable and prudent person (including by undertaking system studies), the generation capacity (adjusted for planned and unplanned outages, standby
requirements, spinning reserve, interruptible loads, must not run constraints, and forecast load) exceeds a safety margin set to the standard of a reasonable and prudent person.

Liquids Event

A5.9	The market service provider may declare a liquids event if more than 10MW of generating plant using this fuel is required to run in the absence of higher merit order plant.
A5.10	The market service provider as soon as practicable after each liquids event must give all other members a notice outlining the reasons for the liquids event and the periods affected by the liquids event.

Calculating band size for top-up trading bands

A5.11 For a member:

(a)	top-up trading band 1 is the band from 0% up to and including 70% of the member’s maximum trading requirement for trading top-up electricity; and
(b)	top-up trading band 2 is the band from 70% up to and including 100% of the member’s maximum trading requirement for trading top-up electricity.

Calculating band size for spill trading bands

A5.12 For a member:

(a)	spill trading band 1 is the band from 0% up to and including 70% of the member’s maximum trading requirement for trading spill electricity; and
(b)	spill trading band 2 is the band from 70% up to and including 100% of the member’s maximum trading requirement for trading spill electricity.

Forecast production data

A5.13	For the purposes of the definition of “forecast production data” a member must provide statistically based forecasts of annual electricity production from its plant as well as shorter-term forecasts, sufficient to enable the member’s balancing band, and top-up and spill requirements to be determined.
A5.14	Where a member is not able to provide forecast production data, the average profile of the system for similar types of generation units may be used.

Appendix 8: Appendix 6 – Procedural rules for arbitration

See rule 8.6.

Application

A6.1

This Appendix 6 applies if:

(a)	in accordance with the rules, the market service provider or a member notifies the arbitrator that a dispute exists; and
(b)	notification of the dispute is not withdrawn in accordance with the rules.

5 October 2004	GOVERNMENT GAZETTE, WA	4719
Informality and expedition

A6.2	Subject to the rules, proceedings must be conducted with as little formality and technicality, and with as much expedition, as the requirements of this Appendix 6 and Chapter 8, and a proper hearing and determination of a dispute, permit.
A6.3	The arbitrator may from time to time make orders:
(a) regulating the conduct of proceedings; and
(b) regulating parties’ conduct in relation to proceedings, which are directed towards achieving the objective in clause A6.2.
A6.4	The parties to a dispute must at all times conduct themselves in a manner which is directed towards achieving the objective in clause A6.2.
A6.5	An order under clause A6.3 is not an award.

Arbitrator may request information

A6.6

The arbitrator may request the Minister to give to the arbitrator any information in the
Minister’s possession that is relevant to the dispute.

A6.7

The Minister is to give the arbitrator the information requested, whether or not it is
confidential and whether or not it came into the Minister’s possession for the
purposes of the arbitration.

A6.8

If the Minister gives the arbitrator information that is confidential:

(a)	the Minister is to identify the nature and extent of the confidentiality; and
(b)	the arbitrator is to treat the information accordingly.

Hearing to be in private

A6.9	Subject to clause A6.10, proceedings are to be heard in private.
A6.10	If the parties agree, proceedings or part of the proceedings may be conducted in public.
A6.11	The arbitrator may give written directions as to the persons who may be present at proceedings that are conducted in private.
A6.12	In giving directions under clause A6.16, the arbitrator must have regard to the wishes of the parties and the need for commercial confidentiality.

Right to representation

A6.13 In proceedings under these rules, a party may appear in person or be represented by
someone else.

Procedure

A6.14 In proceedings, the arbitrator:

(a)	is not bound by technicalities, legal forms or rules of evidence; and
(b)	must act as speedily as a proper consideration of the dispute allows, having regard to the need to carefully and quickly inquire into and investigate the dispute and all matters affecting the merits, and fair settlement, of the dispute; and
(c)	may gather information about any matter relevant to the dispute in any way the arbitrator thinks appropriate.

A6.15

The arbitrator may determine the periods that are reasonably necessary for the fair
and adequate presentation of the respective cases of the parties in the arbitration
hearing, and may require that the cases be presented within those periods.

A6.16

The arbitrator may require evidence or argument to be presented in writing, and may
decide the matters on which the arbitrator will hear oral evidence or argument.

A6.17

The arbitrator may determine that proceedings are to be conducted by:

(a)	telephone; or
(b)	closed circuit television; or
(c)	any other means of communication.

Particular powers of arbitrator

A6.18

The arbitrator may do any of the following things for the purpose of determining a
dispute:

(a)	give a direction in the course of, or for the purpose of, proceedings; and
(b)	hear and determine the proceedings in the absence of a party who has been given notice of the hearing; and
(c)	sit at any place; and
(d)	adjourn to any time and place; and
(e)	refer any matter to an independent expert and accept the expert’s report as evidence.

A6.19 The arbitrator may make an interim determination.

Determinations

A6.20

If the arbitrator makes a determination or interim determination it must:

(a)	make it in writing, signed by the arbitrator; and
(b)	include in the determination a statement of reasons for making the determination.

A6.21

If a determination of an arbitrator under this Appendix 6 contains:

(a)	a clerical mistake; or
(b)	an error arising from an accidental slip or omission; or
(c)	a material miscalculation of figures or a material mistake in the description of any person, thing or matter referred to in the determination; or
(d)	a defect in form,

the arbitrator may correct the determination or the Court, on the application of a
party, may make an order correcting the determination.

Contempt

A6.22 A person must not do any act or thing in relation to the arbitration of a dispute that
would be a contempt of court if the arbitrator were a court of record.

5 October 2004	GOVERNMENT GAZETTE, WA	4721
Disclosure of information

A6.23	The arbitrator may give an oral or written direction to a person not to divulge or communicate to anyone else specified information that was given to the person in the course of proceedings unless the person has the arbitrator’s permission.
A6.24	A person must not contravene a direction given under clause A6.23.

Power to take evidence on oath or affirmation

A6.25	The arbitrator may take evidence on oath or affirmation and for that purpose the arbitrator may administer an oath or affirmation.
A6.26	The arbitrator may summon a person to appear before the arbitrator to give evidence and to produce such documents (if any) as are referred to in the summons.
A6.27	The powers contained in clauses A6.25 and A6.26 may only be exercised for the purposes of arbitrating a dispute under the rules.

Failing to attend as a witness

A6.28

A person who is served with a summons to appear as a witness before the arbitrator
must not, without reasonable excuse:

(a)	fail to attend as required by the summons; or
(b)	fail to appear and report himself or herself from day to day unless excused, or released from further attendance, by the arbitrator.

Failing to answer questions etc.

A6.29

A person appearing as a witness before the arbitrator must not, without reasonable
excuse:

(a)	refuse or fail to be sworn or to make an affirmation; or
(b)	refuse or fail to answer a question that the person is required to answer by the arbitrator; or
(c)	refuse or fail to produce a document that he or she is required to produce by a summons served on it.

A6.30

The determination as to what is a reasonable excuse for the purposes A6.29 is solely
in the discretion of the arbitrator.

A6.31

It is a reasonable excuse for the purposes of clause A6.30 for an individual to refuse or fail to answer a question or produce a document on the ground that the answer or the production of the document might tend to incriminate the individual or to expose the individual to a penalty.

A6.32

Clause A6.31 does not limit what is a reasonable excuse for the purposes of clause
A6.30.

Intimidation etc.

A6.33 A person must not:

(a)	threaten, intimidate or coerce another person; or
(b)	cause or procure damage, loss or disadvantage to another person,

because that other person:

(c)	proposes to produce, or has produced, documents to the arbitrator; or
(d)	proposes to appear, or has appeared, as a witness before the arbitrator.

Party may request arbitrator to treat material as confidential

A6.34 A party to an arbitration hearing may:

(a)	inform the arbitrator that, in the party’s opinion, a specified part of a document contains confidential commercial information; and
(b)	request the arbitrator not to give a copy of that part to another party.

A6.35 On receiving the request, the arbitrator must:

(a)	inform the other party or parties that the request has been made and of the general nature of the matters to which the relevant part of the document relates; and
(b)	ask the other party or parties whether there is any objection to the arbitrator complying with the request.

A6.36 If there is an objection to the arbitrator complying with a request, the party objecting
may inform the arbitrator of its objection and of the reasons for it.

A6.37 After considering:

(a)	a request;
(b)	any objection; and

(c) any further submissions that a party has made in relation to the request, the arbitrator may make a determination:

(d)	to not give to the other party or parties a copy of so much of the document as contains confidential commercial information that the arbitrator thinks should not be given; or
(e)	to give the other party or another specified party a copy of the whole, or part, of the part of the document that contains confidential information subject to a condition that the party give an undertaking not to disclose the information to another person except to the extent specified by the arbitrator and subject to such other conditions as the arbitrator determines.

A6.38

An action for damages lies against any person (other than the arbitrator) who
discloses information that the arbitrator has determined is confidential commercial
information under clause A6.37.

Costs

A6.39

The costs of proceedings, including the fees and costs of the arbitrator, are in the
discretion of the arbitrator who may:

(a)	direct to and by whom and in what manner the whole or any part of those costs is to be paid;
(b)	tax or settle the amount of costs to be so paid or any part of those costs;
(c)	award costs to be taxed or settled as between party and party or as between solicitor and client.

5 October 2004	GOVERNMENT GAZETTE, WA	4723
Appeal to Court

A6.40 A party may appeal to the Court, on a question of law, from a determination of an
arbitrator under this Appendix 6.

A6.41 An appeal must be instituted:

(a)	not later than the 28th day after the day on which the decision is made or within such further period as the Court (whether before or after the end of that day) allows; and
(b)	in accordance with the relevant Rules of Court

A6.42 The Court may make an order staying or otherwise affecting the operation or
implementation of the determination of the arbitrator that the Court thinks appropriate
to secure the effectiveness of the hearing and determination of the appeal.

Copies of decisions to be given to the Minister

A6.43 Where the arbitrator is required to give a copy of a draft decision or final decision to
the parties to a dispute, the arbitrator is to also give a copy of the decision to the
Minister.

Effect of appointment of new arbitrator on evidence previously given and awards and determinations previously made.

A6.44	Where a new person takes over the functions of arbitrator in place of a previous arbitrator who has begun but not completed the hearing and determination of a dispute:
(a) the new arbitrator may order the proceedings to be re-heard:

(i)          in full, in which case all evidence heard by the previous arbitrator is to be disregarded by the new arbitrator; or

(ii)         in part, in which case any evidence heard by the previous arbitrator during the parts of the proceedings which are re-heard is to be disregarded by the new arbitrator;

(b)

if no order is made under clause A6.44(a), then the proceedings are to continue as though the new arbitrator had been present from the commencement of the proceedings;

(c)

if an order is made under clause A6.44(a)(ii), then:

(i)	the proceedings are to continue as though the new arbitrator had been present during the earlier proceedings; and
(ii)	the new arbitrator is to treat any evidence given, document produced or thing done in the course of the earlier proceedings in the same manner in all respects as if it had been given, produced or done in the course of the proceedings conducted by the new arbitrator;

(d)

any interim determination made in the course of the earlier proceedings is by force of this Appendix 6 to be taken to have been made by the new arbitrator; and

(e)

the new arbitrator may adopt and act on any determination of a matter made in the course of the earlier proceedings without applying his or her own judgment to the matter.

A6.45 In clause A6.44, “earlier proceedings” means the proceedings or parts of the
proceedings which the new arbitrator does not order to be re-heard under clause
A6.44(a)(ii).

Arbitrator may issue summons

A6.46 A summons issued by the arbitrator under A6.26:

(a)	requiring a person to appear as a witness before the arbitrator; or
(b)	requiring a person to appear before the arbitrator and to produce a document to the arbitrator.

A6.47 A summons must include:

(a)

the name and address of the person on whom the summons is to be served;

(b)

if the summons is for the production of a document:

(i)	a proper description of the document; and
(ii)	if the document is to be produced by a person that is a corporation, the name and title of the appropriate officer of the corporation who is to attend and produce the document;

and

(c) the date, time, and place of the hearing of the arbitrator at which the person is required to attend and, where applicable, produce the document.

A6.48	The summons remains in force for a period specified in the summons or, if no period is specified, until the conclusion of the proceedings in relation to which the summons has been issued.
A6.49	The summons is to be taken to have been effectively served if:
(a) service by that method is refused or obstructed or made impracticable, a copy

a copy of the summons has been handed to the person to be served or, if the person has been informed of the nature of the summons; or

(b)	a copy of the summons has been delivered to a legal practitioner acting for the person to be served and the legal practitioner has endorsed on the summons a statement to the effect that the legal practitioner accepts service; or
(c)	the person to be served is a corporation and a copy of the summons was served on the corporation in accordance with the Corporations Act 2001 (Cth); or
(d)	a copy of the summons was served in accordance with an agreement made between the parties as to:
(i) the place and method of service; and

5 October 2004 GOVERNMENT GAZETTE, WA 4725

(ii)         the person on whom service may be effected;

or

(e)	an answer to the summons has been filed with the arbitrator; or
(f)	the arbitrator is satisfied that the person to be served has received a copy of the summons.

Decision of the Arbitrator

A6.50

Unless the arbitrator has made a decision under rule 8.5, the arbitrator must require the parties to make submissions to the arbitrator regarding the dispute by a specified date.

A6.51

In making a decision under rule 8.7, the arbitrator must:

(a)	consider submissions received from the parties before the date specified by the arbitrator under clause A6.50;
(b)	after considering submissions received by the date specified by the arbitrator under clause A6.50, provide a draft decision to the parties and request submissions from the parties by a specified date;
(c)	consider submissions received from the parties before the date specified by the arbitrator under clause A6.51(b); and
(d)	after considering submissions received by the date specified by the arbitrator under clause A6.51(b) provide a final decision to the parties.

A6.52

The arbitrator may, but need not, by whatever means it considers appropriate seek written submissions from persons who are not parties to the dispute and take those submissions into account in making its decision under rule 8.7.

A6.53

The arbitrator must provide a final decision under rule 8.7 within three months of
requiring parties to make submissions under clause A6.50. The arbitrator must also
ensure that there is a period of at least 14 days:

(a)	between requiring parties to make submissions under clause A6.50 and the last day for such submissions specified by the arbitrator; and
(b)	between providing a draft decision to the parties under clause A6.51(b) and the last day for submissions on the draft decision specified by the arbitrator.
(c)	in all other respects the timing for the taking of each of the steps set out in clause A6.51 is a matter for the arbitrator to determine.

A6.54

The arbitrator may increase the period of three months specified in clause A6.53 by
periods of up to one month on one or more occasions provided it provides the parties
(and each person who has made a written submission to the arbitrator) with a notice
of the decision to increase the period.

A6.55

The arbitrator need not before making a decision under clause A6.51(b) issue a draft
decision.

A6.56

The market service provider must comply with a decision of the arbitrator made
under this Appendix 6 from the date specified by the arbitrator.

!200400177GG!

PERTH, TUESDAY, 5 OCTOBER 2004 No. 177 SPECIAL

PUBLISHED BY AUTHORITY JOHN A. STRIJK, GOVERNMENT PRINTER AT 3.45 PM

© STATE OF WESTERN AUSTRALIA

ELECTRICITY INDUSTRY ACT 2004

_________

ELECTRICITY INDUSTRY

(WHOLESALE ELECTRICITY

MARKET) REGULATIONS 2004

———————————

WHOLESALE ELECTRICITY

MARKET RULES

11 - Glossary

1.9. Transition

1.9.1.

The Minister may perform any of the functions of the IMO under, or obligations imposed on the IMO by, clauses 4.2, 4.3 and 4.4 in respect of the first Reserve Capacity Cycle.

1.9.2.

Until the IMO is established, the Minister may perform any of the other functions of
the IMO under, or obligations imposed on the IMO by, these Market Rules in
accordance with the Regulations.

1.9.3.

Where the IMO or the Minister:

(a)	takes any action to enable the IMO to perform functions under, or obligations imposed by, a provision of these Market Rules, before the provision commences in anticipation of the provision commencing; and
(b)	the action was taken so far as reasonably practicable in accordance with the provision, as though the provision was in force at the time the action was taken,

then, after the provision commences, the action is deemed to have been taken validly
in accordance with the provision.

1.9.4.

Any action taken by the Minister under clause 1.9.1 or 1.9.2 is deemed to have been
taken by the IMO for the purposes of these Market Rules.

1.9.5.

In making any determination or decision or taking any action under these Market
Rules, the IMO may rely on any action by the IMO or the Minister under clause 1.9.1
or 1.9.2.