NEM vs. SWIS – A system comparison
There are 29 non-interconnected system with operate outside the SWIS including the North West Interconnected System (NWIS). These systems are owned and operated by Horizon Power and are not currently contestable. The following comparison focuses on the SWIS region (see Figure 2).
|
Overview |
NEM |
SWIS |
|
Coverage Area |
NSW, VIC, QLD, SA, ACT, TAS |
South West region of WA |
|
Energy Generated |
211,000 GWh |
17,500 GWh |
|
Number of Generators |
305 Generators |
46 Generators, Biggest being Verve Energy |
|
Number of Retailers |
26 Retailers, Three Majors – AGL, Origin Energy, TRUenergy |
11 Retailers, Synergy (Major Electricity 71%), along with Alinta (Major Gas 50%) and Perth Energy. These three retailers make up nearly 100% of the retail electricity market. |
|
Network Details |
NEM |
SWIS |
|
Network Coverage |
800,000 km of power lines |
90,000 km of power lines |
|
Network Provider |
5 Transmission and 13 Distribution Providers |
Western Power (Joint Transmission and Distribution) |
|
Network Areas |
13 Distribution Networks |
South West Interconnected Network (SWIN) |
|
Metering |
Contestable Market |
Monopoly – Western Power |
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|
Regulatory Details |
NEM |
SWIS |
|
Wholesale Market Operator |
Australian Energy Market Operator (AEMO) |
Independent Market Operator (IMO WA) |
|
Regulator |
Australian Energy Regulator (AER) |
Economic Regulation Authority (ERA WA) |
|
Energy Market Report |
Australian Energy Regulator (AER) |
Economic Regulation Authority (ERA WA) and Minister for Energy |
|
Contestability |
Full Retail Contestability (except <50MWh TAS) |
Retail contestability only available for consumers >50 kWh per annum. If lower, on Synergy tariff. |
|
Market Details |
NEM |
SWIS |
|
Wholesale Market |
AEMO Spot Pool Market |
STEM and Reserved Capacity Market |
|
Market System |
Pool based energy market. (Gross pool market) |
Pool based with capacity and energy traded separately. (Net pool market) |
|
Spot Market Price Cap |
$12,500 / MWh |
$300/MWh for gas fired $700/MWh for liquid fired (decided on a yearly basis) |
|
Long Term Financial Settlements |
Futures or OTC contracts – d-cyphaTrade, AFMA etc. (Futures published on SFE) |
Bilateral Contracts – Settled by IMO (confidential) |
|
Short Term Financial Settlements |
AEMO Spot Pool Price |
Short Term Energy Market (STEM) |
|
Real time adjustments |
AEMO Regional Reference Price |
Balancing Mechanisms |
|
Retail Statistics |
NEM |
SWIS |
|
Residential Customers |
7,700,000 |
913,000 |
|
SME Customers |
850,000 |
86,000 |
|
Large Market Customers |
63,000 |
19,000 |
