Electricity Market Prices – Week ending 31 August 2018

Key electricity market observations for the week ending 31 August 2018:

  • The forward market was generally bullish last week, with some substantial increases in NSW and VIC Q418 contract prices. Increases in Q418 contract prices can largely be attributed to growing concerns that Snowy Hydro will be restricted in their ability to generate due to low water reserves.
  • Spot prices were higher, driven by a number of factors. Snowy has begun generating less during the day, but we also have continued outages at Bayswater and Liddell power stations in NSW. There were some very cold temperatures which pushed up demand, also adding to the pressure on spot prices.
  • Angus Taylor, the new Minister for Energy, frequently appeared in the media and is sending a strong signal to the market that there will be intervention in the energy market to lower prices.
  • In a media statement released 30 August, the QLD Government confirmed their intention to establish CleanCo, Queensland’s third publicly-owned electricity generator. CleanCo is expected to be trading by mid-2019.

Queensland

New South Wales

Victoria

South Australia

Source: AEMO / ASX Energy