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Introduction of Competition
Western Australian Legislation allows 'schemes' to be established for the operation of the State-based gas retail market. Any scheme is to include a legal relationship between the members of the scheme (including gas retailers and gas distribution network operators), an independent entity to manage the scheme, and a set of rules covering the requirements and processes for practical Full Retail Contestability (FRC).
The entity that operates any scheme is required to be independent of the commercial outcomes of the market, but may be owned by companies who are involved in the commercial outcomes of the markets. The Government expects any such entity to recover costs on a cost-recovery basis from their members who are involved in gas retailing. The Western Australian government oversees the operation of any such schemes and the managing entities through the Economic Regulation Authority.
An entity created to operate such a scheme is known as a 'Retail Market Administrator'. Gas retailers and distribution network operators in Western Australia are required to be members of a scheme. Gas shippers and pipeline operators also have obligations in the rules associated with such schemes, and become parties to the schemes through either legislation or regulations.
The market participants in Western Australia and South Australia worked together with the respective governments in preparation for the implementation of practical FRC in these States. Once the policy objectives became clear in these states, and the requirements of the Retail Market Administrators were suitably defined, the gas retail market participants in Western Australia and South Australia established the Retail Energy Market Company Ltd (REMCo) to be the Retail Market Administrator in both States.
REMCo was incorporated on 8 January 2003, and on 1 October 2009, transferred responsibility for administration of the South Australian gas retail market to the Australian Energy Market Operator (AEMO).
REMCo Membership is open to all gas retailers and distributors operating in Western Australia. |
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