The Australian Energy Regulator (AER) monitors and reports on wholesale electricity markets and is required to report on events that result in wholesale electricity spot prices exceeding $5000 per megawatt (MWh) hour and average frequency control ancillary service (FCAS) prices above $5000 per MW over consecutive trading intervals.
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.
Following the unplanned outage of transmission lines in southern New South Wales at 12.52 pm 16 November 2020, the energy price in New South Wales went above $5000 per MWh for the 1.30 pm trading interval.
On 17 November 2020, the price for Queensland Raise 60 Second FCAS exceeded $5000 per MW when the requirement in Queensland reached over 200 MW for the 1.30 pm, 2 pm and 2.30 pm trading intervals.
We will publish reports into these high prices by the end of January 2021.
You can subscribe to receive notifications of these reports; under Type select Performance report.