FAQ: Independent Market Operator (IMO) – Various Market Initiatives

The IMO is the electricity market operator for the South West Interconnected System in Western (SWIS) Australia.  A number of our team members were involved in the design and implementation of this market, first with the Western Australia Electricity Reform Implementation Unit (ERIU) and subsequently with the IMO itself, once established.   This work included developing the detailed design of the market, developing market rules and procedures, preparation and coordination of market trials, advising on rule modifications, extensive industry training, design of market surveillance arrangements, and liaison with the IT vendors.

Market Reform has subsequently provided assistance to the IMO with:

Market Design Review

Market Reform was engaged to review proposed changes to the market design for the Wholesale Electricity Market, and assess the implications of these changes on the potential for market power to be exercised.

Gas Information Services Design

Western Australian legislation has made the IMO responsible for developing and operating a Gas Information Service for Western Australia comprising a Gas Bulletin Board, a Gas Statement of Opportunity and an Emergency Management System.  Market Reform was engaged to develop the detailed design of a Gas Bulletin Board sufficient to guide the IMO in rule development and to advise on the kind of information to be included in Gas Statement of Opportunity.

Reserve Criterion Review

The Market Rules for the electricity market operated by the IMO in South West Interconnected System (SWIS) of Western Australia specifies the logic to be used in determining the required generation capacity of the SWIS.  This logic must be reviewed every 5 years.  Market Reform was engaged to conduct the most recent review.  This work involved studying the historic performance of existing capacity and simulating performance going into the future, trading off the value of supply interruption against the cost of capacity.