edge | 2017 January

25 Jan Confusion following the release of ERMS LGC Fulfilment Plan

Posted at 00:41h in Electricity, News by Thomas Dargue

Today the Australian Financial Review (AFR) has released a misleading news article which states that ERM Power has chosen to pay the penalty price of $65/LGC instead of paying the current market price of $90/LGC. This article has been released following an ERM Power announcement to the ASX yesterday. Even at $90/LGC it is more efficient for ERM Power to purchase LGCs then pay ‘penalty price’. ERM are utilising the flexibility of the scheme to surrender LGCs in future years where they can off-set earnings. ERM Power has a number of tax losses which they want to bring forward by paying ‘penalty price’ (which is not tax deductible) now and using the...

19 Jan Why the recent price spikes in Queensland Electricity?

Posted at 06:03h in Electricity, News by Thomas Dargue

Background The average spot price for the QLD region on Saturday 14 January 2017 was $1,472.95/MWh. 2017 had already seen warm weather and an increasing volatility before Saturday however this was the first day where the 24 hour period averaged more than $1,000/MWh. This report will explore some of the reasons for the high prices on this day. Temperature and demand Temperatures for January have been above average in general. The lowest maximum temperature recorded so far this month has been 26.8 degrees on Tuesday 3 January 2017.This was followed by the highest maximum so far of 35.6 degrees on Thursday 12 January. Saturday 14 January had a maximum temperature of 35.0 degrees...