The Australian Energy Market Operator (AEMO) has suspended the spot market for wholesale electricity across Australia’s National Electricity Market (NEM, covering Queensland, Victoria, South Australia, New South Wales and the Australian Capital Territory), in an attempt to ensure a reliable electricity supply, meet consumer demand and avoid blackouts.
This decision comes as the electricity sector is dealing with rapidly increasing costs, leading AEMO to cap prices and to compensate generators for offering their services and feeding electricity into the grid. For NEM wholesale electricity prices, the cumulative price threshold is AUD1.4m (US$950,000) over a 7-day period. This triggers an administered price cap of AUD300/MWh (US$209/MWh) under the National Electricity Rules.
This is the first time the market has been suspended nationally in Australia. It will be reviewed daily in each affected state.
Interested in Global Energy Research?
Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.
This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.