Electricity Market Prices – Week ending 30 November 2018

Key electricity market observations for the week ending 30 November 2018:

  • Draft legislation was released last week that will essentially empower the Treasurer to force divert assets if it is deemed that the public good outweighs any detriment. The draft legislation would first empower the CCC to warn power companies that they have somehow distorted or manipulated the energy market. The nature, size and type of market manipulation or disruption is intentionally vague within the draft legislation. The proposed legislation has been slammed by business groups, associations, the opposition treasurer and energy legal professionals. EnergyAustralia Managing Director Catherine Tanna commented saying that there has been “no proposed consultation or assessment of consequences”, which is completely true. Energy consumer groups have provided their view that the legislation increases sovereign risk and will reduce investment in Australia’s energy sector, which is in the midst of experiencing high prices. The draft legislation is tabled to go to parliament this week.
  • QLD demand peaked on Wednesday afternoon at 5.00pm at 8,830 MW, surpassing NSW demand at this time which is fairly uncommon.
  • Spot prices were in all regions with SA increasing the most. Low wind generation and higher gas prices key drivers behind the higher spot prices in SA.

Queensland

New South Wales

Victoria

South Australia

Source: AEMO / ASX Energy