WA MARKET UPDATE
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Electricity Prices
In October 2025, we observed that Western Australia’s electricity market remained relatively steady compared to winter volatility, supported by strong rooftop solar generation and moderate demand during mild spring conditions. However, evening peaks continued to drive short-term price fluctuations as solar output declined and wind generation varied. Network congestion and ongoing maintenance at key gas and coal units added localised supply pressures, particularly during high-demand periods.
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Generation Mix
Western Australia’s electricity generation in October came from a combination of gas, coal, wind, and solar. Renewables contributed approximately 35–40% of total supply, led by rooftop solar, which continued to provide record levels of midday generation. Wind generation was more variable, particularly across the South West Interconnected System (SWIS), occasionally affecting evening pricing stability.
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Several key factors influenced supply and pricing during October:
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Muja Power Station (Collie): Ongoing unit maintenance limited available coal-fired generation capacity.
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Pinjar and Kwinana gas plants: Supported evening peaks, but higher fuel costs added price pressure.
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Wind generation variability: Contributed to short-term price volatility across the SWIS.
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Rooftop solar: Strong output helped suppress daytime wholesale prices, particularly in Perth and regional centres.
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Battery storage: Continued trials at Collie and Kwinana demonstrated progress in grid firming and stability.
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Futures Pricing
We observed that forward electricity prices for Western Australia in October 2025 remained stable, with minor fluctuations of around ±6–9%, reflecting an improved market balance. Evening peak prices rose modestly due to variable wind generation and network constraints, though midday solar generation continued to ease overall average price levels.
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what it means for your business
For large energy users, the stabilising electricity market presents a valuable window to review forward contracts and lock in more predictable energy costs before summer demand increases. While daytime prices remain low thanks to solar generation, evening peak volatility continues to pose a risk for businesses operating during high-demand hours. Outages at key gas and coal units, combined with network congestion, could still trigger localised price spikes, particularly if summer brings heat-related demand surges.
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We recommend businesses take advantage of the current period of relative stability to review energy procurement strategies, explore flexible contracting, or assess opportunities for on-site solar and storage to reduce exposure to peak pricing.
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If your business does not yet have a strategy in place, we can help. Contact us for a free bill check or to discuss a tailored energy procurement plan.
On October 25, 2025, the Australian Energy Market Operator (AEMO) initiated the consolidation of the Retail Electricity Market Procedures. This process aims to streamline and update the procedures to ensure consistency and clarity across the market. The consolidated procedures are set to take effect on October 26, 2025. This move is part of AEMO's ongoing efforts to enhance the efficiency and transparency of the retail electricity market in Western Australia.
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What this means for businesses
These regulatory developments signify a more structured and transparent energy market in Western Australia. For large energy users, this means:
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Increased Market Clarity: The consolidation of procedures and the determination of benchmark capacity providers provide clearer guidelines and expectations, aiding in better long-term energy planning.
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Potential Cost Implications: Changes in reserve capacity pricing and network access points may influence energy costs, making it essential for businesses to stay informed and adjust their strategies accordingly.
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Opportunities for Participation: With the evolving market structure, there may be new avenues for large energy users to engage in demand response programs, capacity tenders, and other initiatives that can lead to cost savings and enhanced energy management.
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If you require assistance in navigating these changes or developing strategies to optimise your energy procurement and usage, contact us.
WA Market Advisory Committee Expands Under New ESM Rules
On October 6, 2025, Energy Policy WA released the results of its review of the Market Advisory Committee (MAC), which advises the Coordinator of Energy on the Wholesale Electricity Market (WEM) and rule changes. The review occurred because the market rules expanded to become the new Electricity System and Market (ESM) rules. These cover a wider range of topics, including distributed energy resources (DER) and overall grid operation.
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The review confirmed the MAC will broaden its scope to match the new ESM rules. It will continue to include representatives from the commercial and industrial (C&I) sectors. Following the review, Energy Policy WA began consulting on a revised exposure draft of the ESM Amending Rules. Feedback was due by October 27, 2025.
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what this means for businesses
The expansion of the Market Advisory Committee’s (MAC) role to align with the new Electricity System and Market (ESM) rules has significant implications for large energy users. With the rules now covering distributed energy resources (DER) and broader grid operations, large commercial and industrial (C&I) users may see changes in market participation opportunities, obligations, and pricing structures. The consultation on the revised ESM Amending Rules provides a chance for businesses to influence how the market evolves, potentially affecting contract terms, access to demand-response programs, and exposure to peak pricing.
Staying engaged with these developments is critical for optimising energy procurement, managing costs, and leveraging emerging opportunities in WA’s evolving wholesale market.
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We monitor these regulatory developments closely and analyse their potential impacts. We ensure our customers are kept informed and supported with insights and strategies to manage exposure, optimise procurement, and make proactive energy decisions.
Synergy Confirms $40 Million Overcharge, Commits to Repayment
On 11 October 2025, Synergy, Western Australia’s state-owned electricity utility, acknowledged that a system failure had resulted in approximately $40 million in overcharges to its customers, primarily affecting residential and small business customers.
The error, stemming from internal billing processes, affected a wide range of customers, prompting the utility to initiate a comprehensive internal review and commit to reimbursing those impacted. Synergy has also pledged to strengthen its billing systems and internal controls to prevent a recurrence, highlighting the importance of robust operational oversight in a rapidly evolving energy market.
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what this means for businesses
For large commercial and industrial (C&I) energy users, this incident underscores the critical need to closely monitor energy usage and billing accuracy. Overcharges of this magnitude can have a material impact on operational budgets, cash flow planning, and long-term financial forecasting. Businesses that rely heavily on electricity are particularly vulnerable to such errors, which may also affect contract compliance, cost benchmarking, and risk management strategies.
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At TTEG, we actively monitor developments in the energy sector, including utility billing issues, and provide our clients with detailed analysis and support.