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

 

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