The AER’s wholesale markets quarterly report analyses trends in the electricity and gas wholesale markets, focusing on the most recent quarter, and alerts participants and stakeholders to issues of concern. The quarterly reports include discussion of prices, demand, generation, contracts, market outlook and new entry and exit. These reports are now more concise and made available sooner after the quarter’s end to address the need for timely market information, including reporting on the impact of the Federal Government’s Energy Price Relief Plan.
Insights - January to March 2024
- Electricity spot prices were higher than last quarter in all regions, despite an increase in low-priced offers. Weather was a key price-driver, with heat causing higher demand while a severe storm in Victoria caused network outages.
- Heat and humidity drove record maximum electricity demand in Queensland.
- Average forward electricity prices for 2025 fell in all regions, but Q1 2025 prices in Queensland and NSW.
- Tallawarra B gas station and a battery commenced generating electricity this quarter. Further new capacity has been delayed to later this year.
- Unusually, Queensland was a net importer with Victoria the only net exporter of electricity this quarter.
- Decreased electricity baseload outages reduced demand for gas powered generation to record lows for Q1, offsetting reduced supply from Longford.
- Domestic gas spot prices remain close to 2021 levels, averaging under $12 per GJ, driven by low demand over summer.
- Strong short term trade on the gas supply hub and day ahead pipeline capacity auction with close to 90% below $12 per GJ.
- Gas markets will remain vulnerable to shocks going into winter but high storage levels will mitigate these risks.