The role of the Independent Market Operator of Western Australia (IMOWA) is to administer and develop the state’s wholesale electricity market. 

A primary function for IMOWA is the settlement of all transactions.  This involves the calculation of trade values and the collection and distribution of payments.  IMOWA found that increasingly complex settlement calculations and processes were resulting in settlement run times becoming so lengthy that they were at risk of not meeting their obligations around settlement timeframes.  

 

Igniter’s approach

We were engaged by IMOWA to review the efficiency and effectiveness of the settlement processes, systems and operations and to recommend where and how these could be enhanced.

We began by mapping out all processes involved in generating accurate settlement results.  Based on this, we then assessed the value of some of the validations that had been introduced to flag and capture exceptions in data.

Many of the issues we identified could be linked back to configurations and structures within the settlements database which were causing some calculations to run for several hours.  

Based on our review, we recommended changes to refine settlement processes and configurations to reduce run times.

Outcomes for our client

After implementing our recommendations, IMOWA’s settlement timeframes reduced dramatically from 3 days to just 6 hours.  This provided the settlements team with additional time to confirm settlement results and significantly reduced the risk of IMOWA not meeting its obligations.