Type
Sector
Electricity
Segment
Wholesale
Issue date
AER reference
AC 119/21

On 21 July 2021, the wholesale electricity price in Queensland was above $5,000 per megawatt hour (MWh) for the 6 pm and 6.30 pm trading intervals. There were also Frequency Control Ancillary Service (FCAS) prices above $5,000/MW in Queensland at the same time.

The Australian Energy Regulator (AER) will publish a report into these high prices by early September 2021.

The AER monitors and reports on wholesale electricity markets and is required to report on events that result in wholesale electricity spot prices exceeding $5,000/MWh and average FCAS prices above $5,000/MW over consecutive trading intervals.

These reports are designed to examine market events and circumstances that contributed to wholesale market price outcomes and are not an indicator of potential compliance issues or enforcement action.

Most customers are not directly exposed to wholesale electricity prices. Energy retailers are the main purchasers in the wholesale electricity market. Retailers bundle electricity with network services for sale to their residential, commercial and industrial customers. Generators and retailers can manage their exposure to price variations in the wholesale market by entering hedge contracts that lock in firm prices for the electricity they intend to produce or buy.

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