Synergy fined AU$1.2 million for Western Australia electricity price distortions

Synergy, Western Australia’s largest energy retailer and generator, has been fined AU$1.2 million by the Economic Regulation Authority (ERA) for breaching Wholesale Electricity Market (WEM) rules. The penalty follows an investigation into the Kwinana Battery Energy Storage System Stage 1 (KBESS1), which caused inflated wholesale electricity prices through profit-maximising bidding behaviour.

The ERA found that a software error led to the battery charging during high-price intervals, such as those around $250/MWh, rather than during cheaper periods. This conduct resulted in 83 dispatch interval breaches since late 2023. While the ERA noted the breaches stemmed from an unintentional software error rather than deliberate conduct, the fine reflects the revenue gained, the duration of the activity, and its impact on market costs.

Synergy has admitted to the breach and cooperated with the investigation. As part of the regulatory decision, the company must provide full details of the software fix and may be required to submit the solution to an independent audit. The ERA stated that the action serves as a reminder that non-compliance is not acceptable, even when accidental, to protect the interests of Western Australian consumers.