Wholesale electricity prices above $5,000 per MWh in South Australia on 8 September 2022

The AER monitors and reports on wholesale electricity markets and is required to report on significant price outcomes.

On 8 September 2022, the wholesale electricity 30-minute price in South Australia was $9,887 per megawatt hour (MWh) for the 12.00 am period and $9,634/MWh for the 12.30 am period.

The AER will publish a report into these high prices by early November 2022.

On 29 May 2022, the Australian Energy Market Commission (AEMC) published a rule-change altering the AER’s high price reporting obligations. Under the new rule, the AER is to develop guidelines for the monitoring and reporting on significant price outcomes. The AER will publish the final guidelines by 29 September 2022. Until then the AER will report under a transitional rule requiring compliance with new clauses 3.13.7(b)(2) and (3) in a timely manner.

Note that significant price reports are designed to examine market events and circumstances that contributed to wholesale market price outcomes and are not an indicator of potential compliance issues or enforcement action.

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.

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Sector: 
Segment: 
Issued date: 
12 September 2022
AER reference: 
AC 141/22
Contact: 
General enquiries - Wholesale performance wholesaleperformance@aer.gov.au