Ruqayyah Snyder
Western Australia's electricity market is unique, with the majority of electricity generated by coal and gas, and a small portion from renewables. The Western Australian Government owns three corporations with active roles in the electricity supply chain: Western Power, Synergy, and Horizon Power. Western Power manages the transmission and distribution systems within the South West Interconnected System (SWIS), the state's largest electricity network. Synergy, the state's largest generator, is responsible for power generation and sale within SWIS. Outside of SWIS, Horizon Power generates, distributes, and sells electricity. Customers within the SWIS who consume more than 50 megawatt-hours of electricity annually are considered contestable and can choose their retailer, while non-contestable customers are supplied by Synergy. Horizon Power is currently the only retailer in many regional areas. With potential electricity deregulation, Western Australians may soon have more choices for their energy providers.
| Characteristics | Values |
|---|---|
| Number of electricity companies | 3 major electricity networks |
| Companies | Western Power, Synergy, Horizon Power |
| Area covered by Western Power | South West Interconnected System (SWIS) |
| Area covered by Horizon Power | North West Interconnected System (NWIS), Esperance network, 30+ regional networks |
| Owner of Western Power and Horizon Power | Western Australian Government |
| Largest electricity generator | Synergy |
| Percentage of large-scale electricity generation by Synergy in 2016 | 50% |
| Area covered by Synergy | South West Interconnected System (SWIS) |
| Area covered by private electricity generators | South West electricity market |
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What You'll Learn
Western Australia's three major electricity networks
Western Australia has three major electricity networks, all owned by the Western Australian Government. These are Western Power, Synergy, and Horizon Power.
Western Power is responsible for building, maintaining, and operating the electricity network within the South West Interconnected System (SWIS). SWIS is the biggest electricity network in Western Australia, with a boundary extending to Kalbarri in the north, Albany in the south, and Kalgoorlie in the east. Western Power operates the transmission and distribution systems within the SWIS.
Synergy is the largest electricity generator in Western Australia, owned by the Western Australian Government. It is responsible for the sale of electricity and power generation within the SWIS. In 2016, Synergy produced around 50% of the large-scale electricity generation in the South West electricity market. Synergy serves over one million residential, business, and industrial customers.
Horizon Power is Western Australia's regional and remote energy provider, supplying electricity to over 35,000 residential and 9,000 business customers. It is responsible for the generation, distribution, and sale of electricity in areas outside the SWIS. Horizon Power operates the North West Interconnected System (NWIS) in the Pilbara region, the smaller Esperance network, and over 30 discrete networks in regional towns and remote communities.
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Western Power and its role
The Western Australian Government owns three corporations with active roles in the electricity supply chain: Western Power, Synergy, and Horizon Power. Western Power is a state-owned entity that does not generate electricity or send electricity bills to customers. Its role is to manage the physical network that transports electricity, including the poles, wires, substations, and other infrastructure that brings electricity to homes and businesses. Western Power is responsible for building, maintaining, and operating the electricity network within the South West Interconnected System (SWIS), the largest electricity network in Western Australia. The SWIS covers a vast area, extending from Kalbarri in the north to Albany in the south and Kalgoorlie in the east.
Western Power ensures that energy is safely and optimally distributed across the SWIS. It is accountable to the Minister for Energy and is a statutory corporation established by the Electricity Corporations Act 2005 (WA). The corporation is responsible for managing the poles, wires, and other infrastructure that constitutes the energy grid.
Western Power plays a crucial role in the safety of the electricity network. It receives notifications from qualified electrical contractors when electrical work has been completed on a property. The contractor must provide a Completion Notice to Western Power, confirming that the work has been executed safely and according to the required standards. Western Power also addresses issues related to solar panel installations and connections to the grid.
Western Power's role in the electricity supply chain is distinct from that of Synergy and Horizon Power. Synergy, another state-owned entity, is responsible for generating and retailing energy within the SWIS. It handles billing, energy buyback schemes, and managing customer supply agreements. Horizon Power, on the other hand, operates as a generator, distributor, and retailer of energy in the northern half of Western Australia and the southeastern area towards Esperance. It manages the North West Interconnected System (NWIS) and supplies electricity to over 35,000 residential and 9,000 business customers in regional and remote areas.
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Synergy and its electricity rates
Western Australia's electricity supply chain involves electricity generators, network operators, and retailers. The Western Australian Government owns three corporations with active roles in the electricity supply chain. Western Power is responsible for building, maintaining, and operating the electricity network within the South West Interconnected System (SWIS). Synergy, the focus of this answer, is responsible for electricity sales and power generation within the SWIS. Horizon Power, on the other hand, handles electricity generation, distribution, and sales outside the SWIS.
Synergy is the largest electricity generator in Western Australia, producing around 50% of the large-scale electricity generation in the South West electricity market in 2016. It offers a range of electricity plans for residential customers, including the Home Plan A1 Tariff, which has a flat rate for all seasons. This plan includes a supply and usage fee set by the WA State Government, which applies all day, every day, for residential electricity use only. Customers can also choose the Midday Saver Plan, which offers cheaper rates during off-peak times.
Synergy's electricity rates in Perth have been increasing. From 2014 to 2024, Synergy electricity rates in Perth increased by an average of 2.7% per year. For example, a home consuming 25 units daily in 2014 would have paid around $396.03 per bi-monthly bill, whereas in 2025, the same consumption would result in a bill of $541.66. The increase in Synergy's electricity rates is influenced by various factors, including inflation, East Coast (Australia) energy market fluctuations, skilled wages, global supply and demand, and emission reduction targets.
Customers supplied by Synergy pay electricity prices regulated by the Western Australian Government. Residential households and small businesses typically fall within the non-contestable category. However, customers consuming more than 50 megawatt-hours of electricity annually become contestable and can negotiate rates with their chosen retailer. These customers have the option to pay capped rates offered by Synergy or choose another retailer with negotiated tariff rates.
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Horizon Power's customer base
Horizon Power is the regional and remote energy provider for Western Australia, supplying electricity to over 35,000 residential and 9,000 business customers. The company operates across 2.3 million square kilometres, delivering energy solutions across the largest geographical catchment of any Australian power provider. This includes supporting WA businesses and communities, respecting the landscape, and maintaining a commitment to Aboriginal and Torres Strait Islander peoples.
Horizon Power operates the North West Interconnected System (NWIS) in the Pilbara region, the Esperance network, and over 30 other discrete networks in regional towns and remote communities. These systems are supported by six regional depot locations with local operations, stakeholder engagement, and customer and community service teams.
The company offers rebates and subsidies to eligible customers to help reduce energy costs and is investing in energy innovation to create regional jobs and greener, future-ready communities. Horizon Power also provides one-off rebates and no-interest loans to help households purchase residential batteries and electric vehicles.
In addition to its focus on energy solutions, Horizon Power is dedicated to strengthening rural communities. The company partners with organisations like Teach Learn Grow, providing hundreds of hours of free tutoring and mentoring to disadvantaged students across Western Australia. Horizon Power also acknowledges the Traditional Custodians throughout Western Australia and their continuing connection to the land, waters, and communities.
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Privately-owned electricity generators
Western Australia's electricity market is a mix of government-owned and privately-owned companies. While the Western Australian government owns three corporations with active roles in the electricity supply chain, privately-owned electricity generators supply almost half of the electricity in the South West electricity market and private mining, mineral processing, and other operations.
The Economic Regulation Authority provides information about all electricity generation license holders in Western Australia. The Australian Renewable Energy Mapping Infrastructure (AREMI) project provides information on renewable energy resources and facilities in Western Australia.
The Australian Energy Market Operator (AEMO) provides the names and capacities of all registered facilities in the Wholesale Electricity Market, which covers the South West Interconnected System (SWIS). The SWIS is an electricity grid in the southwestern part of Western Australia, extending to the coast in the south and west, to Kalbarri in the north, and Kalgoorlie in the east. It is operated by Western Power, which is owned by the Western Australian government and includes over 7,800 km of transmission lines and over 93,000 km of distribution lines.
Some of the generators within the SWIS are owned by the government through Synergy, which is the state's largest generator of power, with more than a million retail customers. Others are privately owned. Outside the SWIS, Horizon Power, which is also government-owned, operates the North West Interconnected System (NWIS) in the Pilbara region, the smaller Esperance network, and over 30 discrete networks in regional towns and remote communities.
Alinta Energy, a Hong Kong-based Australian energy generation and retail company, owns electricity power stations in Western Australia, Queensland, and New Zealand, as well as natural gas power stations in Queensland, Victoria, and Western Australia. They generate up to 1,957 MW of power each year. Additionally, the Japanese business groups Sumitomo Group and Kansai Electric co-own the Blueswater power station in Western Australia.
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Frequently asked questions
There are two main electricity companies in Western Australia: Synergy and Horizon Power.
The South West Interconnected System (SWIS) is the biggest electricity network in Western Australia. It is managed by Western Power, which is owned by the Western Australian Government. The SWIS region extends from Kalbarri in the north, to Albany in the south, and Kalgoorlie in the east.
Synergy is the largest electricity generator in Western Australia and operates within the SWIS. Horizon Power operates outside the SWIS and manages over 30 smaller networks in regional areas.
Yes, there are. Privately-owned electricity generators supply almost half of the electricity in the South West electricity market.
Electricity prices in Western Australia are regulated by the government and are similar across the state. The solar feed-in tariffs offered by Synergy and Horizon Power are generally lower than the maximum rates offered in other states and territories.
