Prices in the southern regions were aligned for most of the week, averaging $28/MWh in New South Wales, $31/MWh in Victoria and $34/MWh in South Australia. Prices in Queensland averaged $19/MWh.
In Tasmania average spot prices increased by a quarter to $82/MWh. Coincident high prices in the energy market and in some of the ancillary services markets resulted from the scarce availability of some of these services. Water shortages affecting Gordon and Poatina, together with the outage of Bell Bay—all major providers of these services—contributed to the scarcity.
Turnover in the energy market for the mainland was $100 million, with a total cost of ancillary services for the week of around $270 000 or 0.3 per cent of turnover. Turnover in Tasmania was $17 million, with ancillary services totaling $710 000 or four per cent of turnover. Customers in that region paid almost $500 000 for those services.
Demand forecasts produced four and 12 hours ahead varied from actual by more than five per cent in a third of all trading intervals in South Australia and one quarter of all trading intervals in Tasmania. This compares with less than 9 per cent in the other regions. Significant variations between forecast and actual prices occurred in 77 or 23 per cent of all trading intervals.
The AER would welcome comments on the information contained in, or the layout of, the report. Comments should be sent to Peter Adams or Mark Wilson, AER, 14th floor, 13 Grenfell Street, Adelaide SA 5001 (email peter.adams@aer.gov.au; mark.wilson@aer.gov.au; fax (08) 8213 3414).
Figure 1 sets out national demand and spot prices in each region for each trading interval. Figure 2 compares the volume weighted average price with the averages for the previous week and the same quarter last year. Figure 3 compares the weekly price volatility index on the same basis.
Figure 1 National demand and spot price all regions
Figure 2 Volume weighted average spot price for energy market ($/MWh)
The maximum spot price in New South Wales, Victoria and South Australia around $290/MWh all occurred at 6.30pm on Tuesday. The maximum spot price in Queensland of $42/MWh occurred on Sunday evening. In Tasmania, the spot price reached $1064/MWh on Tuesday morning.
There were no low reserve conditions forecast throughout the week. Figures 11 to 14 show spot price, net imports and limits at the time of weekly maximum demand.
The total cost of ancillary services on the mainland for the week was $270 000 or 0.3 per cent of the total turnover in the energy market.
Figure 4 Volume weighted average frequency control ancillary service prices (excluding Tasmania)
Raise
Lower
6 sec
60 sec
5 min
Reg
6 sec
60 sec
5 min
Reg
Last week($/MW)
1.43
0.69
0.98
1.36
0.16
0.12
1.16
1.58
Previous week ($/MW)
1.14
0.56
0.88
1.21
0.15
0.17
1.03
1.55
Last quarter ($/MW)
2.43
0.81
0.99
1.07
0.23
0.96
2.96
1.51
Market cost($1000s)
74
35
67
30
1
1
27
35
% of energy market
0.07%
0.04%
0.07%
0.03%
0%
0%
0.03%
0.03%
In Tasmania ancillary services totaled $710 000 or four per cent of turnover. Customers in that region paid almost $500 000 for those services. The price for raise 6 second reached $10,000/MW on Thursday. The price for lower 6 second was also high on Thursday, spiking to $1000/MW a number of times. The cost for lower 6 second totaled $400 000—the third largest ever behind the separation events of December 2002 and March 2004.
Figure 5 Tasmanian volume weighted average frequency control ancillary service prices
Raise
Lower
6 sec
60 sec
5 min
Reg
6 sec
60 sec
5 min
Reg
Last week($/MW)
20.53
1.05
1.05
3.71
31.64
1.07
1.05
1.61
Previous week ($/MW)
1.43
1.05
1.06
1.22
3.81
1.08
1.05
1.09
Tasmania Market cost($1000s)
187
10
11
32
401
31
26
14
% Tasmania of energy market
1.41%
0.07%
0.08%
0.24%
3.01%
0.24%
0.19%
0.1%
Figure 6 shows the daily breakdown of price for each frequency control ancillary service. It also includes the cost of services sourced locally and in Tasmania.
Figure 6 Daily frequency control ancillary service prices
Figure 7 shows the weekly participation in each of the ancillary service markets on a regional basis.
Figure 7 Regional participation in ancillary services
Figures 8 and 9 show 30-minute prices for each of the ancillary services.
Figure 8 Prices for raise services
Figure 9 Prices for lower services
Figures 10 and 11 show the 30-minute Tasmanian price for each or the ancillary services.
Figure 10 Tasmanian prices for raise services
Figure 11 Tasmanian prices for lower services
Figures 12 and 13 present both the raise and lower requirements for each service over the week.
Figure 12 Raise requirements
Figure 13 Lower requirements
Figures 14 and 15 present both the raise and lower Tasmanian requirements for each service over the week.
