The Gallop and Rann Governments have welcomed the establishment of a non-profit retail energy market company, REMCO, to oversee the implementation and operation of retail market arrangements in both WA and SA.

The company was registered with the Australian Securities and Investment Commission this week.

WA Energy Minister Eric Ripper said the creation of an 800,000 strong retail market meant there were greater economies of scale for gas suppliers to try to win market share.

"Allowing customers to choose their preferred gas retailer introduces competition to provide the best price and the best service," said Mr Ripper.

South Australian Energy Minister Patrick Conlon said that in SA, customer choice in gas would enhance competition in both gas and electricity, allowing consumers to get the best deal for their energy needs.

"There is a lot of work to be done to prepare for a smooth transition to an open gas market where consumer choice prevails," Mr Conlon said.

"The establishment of REMCO is an important step in ensuring that the market operates in a fair and equitable way."

The board of REMCO will consist of industry representatives and independent directors.

WA expected to introduce full retail contestability in the gas market by the end of this year, while SA was expecting an early 2004 start date.