The AER to release latest retail and wholesale market reports

This month the AER is releasing its latest assessment of recent developments in retail and wholesale energy markets.

At our Market Performance Forum in Melbourne on 27 November 2019, AER Chair Clare Savage will launch the latest annual retail markets report and the wholesale electricity and gas markets quarterly report.

In the lead up to the forum, today the AER published the quarter three 2019 report on the performance of the wholesale electricity and gas markets.

Key findings

Key findings in the wholesale electricity and gas markets quarter three 2019 report include:

  • In most regions lower average wholesale electricity prices than this quarter last year
  • Wholesale electricity prices were lowest in Queensland and highest in Victoria
  • There was a continued increase in wind and large scale solar generation which contributed to a record number of negative wholesale prices in South Australia and Queensland
  • Brown coal generation in Victoria was at its lowest levels since the start of the NEM, which was driven by generator outages
  • Gas generation increased in all mainland regions
  • On average, gas and black coal generators set lower prices, coinciding with falling fuel prices
  • Gas commodity spot prices fell in line with falling Asian LNG spot prices
  • There was continued growth in gas spot market trade and increased market participation
  • Flows of gas from northern to southern markets reached record levels over winter, as gas production reached new highs
  • In addition, the new Day Ahead Auction of pipeline capacity provided low cost opportunities to transport gas from north to south, leading to lower spot market prices in Sydney and Victoria.

Background

The AER's monitoring, regulation and enforcement roles will help deliver affordable and reliable energy for Australian consumers. This inaugural quarterly report bridges the gap between our short term and long term performance reports, allowing us to identify significant trends in the electricity and gas markets, and independently evaluate market developments as they emerge.

The annual retail markets report will be published on 27 November 2019.

Registrations for the Market Performance Forum on 27 November 2019 are closed.

Segment: 
Issued date: 
15 November 2019
AER reference: 
AC 165/19
Contact: 
General enquiries - Market performance marketperformance@aer.gov.au