Wholesale markets quarterly - Q3 2019

Quarterly report
Release date: 
15 November 2019


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.

Key findings

  • 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.