Electricity generated in the National Electricity Market (NEM) is sold in a wholesale spot market covering Queensland, New South Wales, Victoria, South Australia, Tasmania and the ACT. There is also a wholesale spot market for gas in Victoria, a short term trading market for gas in Sydney, Adelaide and Brisbane, and voluntary gas supply hubs at Wallumbilla and Moomba. The AER’s State of the energy market report outlines the operation of these markets.
Our role in wholesale markets
The AER monitors wholesale energy markets for compliance with the underpinning legislation and rules, and takes enforcement action for breaches. Market monitoring also allows us to inform policy makers, participants and the community about wholesale market activity, including prices.
Types of wholesale market reports
Our reports cover four broad categories.
- Market performance – weekly analysis of the gas and electricity wholesale markets and detailed reports into high-price events, long-term monitoring of the effectiveness of competition and the efficient operation of the National Electricity Market, and monitoring for gas market manipulation at the gas supply hub.
- Market guidelines - covering specific wholesale market matters (network guidelines and retail guidelines are located in Networks and Pipelines and Retail Markets respectively).
- Compliance reporting – including Quarterly Compliance Reports on our compliance/enforcement activities; compliance bulletins that set out our position on specific issues; and investigation reports on major market incidents.
- Enforcement matters – on matters where we issue infringement notices or commence proceedings.