Why WA is not suited to an energy-only electricity market

Designing an effective energy-only electricity market requires several minimum conditions to address issues like market power and to deliver efficient outcomes. The WA electricity market is too small for such a design to work properly and should maintain a market for power capacity as well as energy.

*This is the executive summary of a report published by Houston Kemps Economists.

Designing wholesale electricity markets to deliver electricity to consumers efficiently both now and into the future has been a key focus for economists.

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