The Australian Energy Regulator (AER) monitors and reports on wholesale electricity markets. As part of this role, we report on events that result in wholesale electricity spot prices exceeding $5000 per megawatt hour.
Most customers are not directly exposed to wholesale electricity prices. Energy retailers are the main purchasers in the wholesale electricity market. Retailers bundle electricity with network services for sale to their residential, commercial and industrial customers. Generators and retailers can manage their exposure to price variations in the wholesale market by entering hedge contracts that lock in firm prices for the electricity they intend to produce or buy.
Across Thursday 30 January and Friday 31 January 2020, there were a number of trading intervals where the spot price in South Australia, Victoria and New South Wales was above $5000 per MWh. We will publish a report into these high prices within 40 business days, by 30 March 2020.
In addition, there were a number of trading intervals where the price of market ancillary services in South Australia was above $5000 per MW across Friday 31 January and Saturday 1 February 2020. We will also be publishing a report into these high prices.
You can subscribe to receive notifications of these reports; under Type select Performance report.