The Australian Energy Regulator (AER) monitors and reports on wholesale electricity markets and is required to report on events that result in wholesale electricity spot prices exceeding $5000 per megawatt (MWh) hour and average frequency control ancillary service (FCAS) prices above $5,000 per MW over consecutive trading intervals.
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.
On 12 March 2021, the wholesale electricity price in South Australia went above $5,000 per MWh on 6 occasions between the 7.30 pm to midnight trading intervals. We will publish a report into these high prices by mid-May 2021.
You can subscribe to receive notifications of these reports; under Type select Performance report.