Role of the IMO

The IMO was established in December 2004 to administer and operate the Wholesale Electricity Market, including ensuring adequate capacity to meet the demand of Western Australian consumers within the South West Interconnected System.

Functions are conferred on the IMO by:

• the Wholesale Electricity Market Rules (the "Market Rules"); and

• the Electricity Industry (Independent Market Operator) Regulations 2004 (the "IMO Regulations")

Wholesale Electricity Market Rules

Under clause 2.1.2 of the Market Rules, the specific functions of the IMO are to:

• administer the Market Rules;

• operate the Reserve Capacity Mechanism (RCM), the Short Term Energy Market (STEM) and the balancing process;

• settle such transactions as required under the Market Rules;

• carry out a Long Term Projected Assessment of System Adequacy (PASA) study and to publish a Statement of Opportunities Report;

• administer tender processes for Network Control Services where required by the Market Rules and to enter into Network Control Service Contracts;

• process applications for participation, and for the registration, de-registration and transfer of facilities;

• release information required to be released by the Market Rules;

• publish information required to be published by the Market Rules;

• develop amendments to the Market Rules and replacements for them;

• develop Market Procedures, and amendments and replacements for them;

• where required by the Market Rules, make available copies of the Market Rules and Market Procedures, as are in force at the time;

• monitor the compliance with the Market Rules of other Rule Participants, investigate potential breaches of the Market Rules, and if thought appropriate, initiate enforcement action under the Regulations and the Market Rules;

• support the Economic Regulation Authority (ERA) in its market surveillance role, including providing any market related information required by the ERA;

• support the ERA in its role of monitoring market effectiveness, including providing any market related information required by the ERA; and

• carry out any other functions conferred, and perform any obligations imposed, on it under the Market Rules.

Electricity Industry (Independent Market Operator) Regulations 2004

In addition to providing for the functions of the IMO to include the specific roles imposed by the Market Regulations and the Market Rules, the general functions provided for under the IMO Regulations include:

• undertaking, maintaining and operating any system, facilities or equipment required for, or in connection with, the performance of its functions;

• doing anything that the IMO determines to be conductive or incidental to the performance of its functions; and

• doing anything that it is authorised to do by any other written law.