Sector
Electricity
Gas
Segment
Wholesale
Categories
Quarterly report
Event date
Release date

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 - April to June 2024

Electricity

  • Electricity spot prices increased in all regions except Queensland, with VWA prices ranging between $109 per MWh in Queensland to $189 per MWh in NSW.
  • Prices increased due to a combination of higher demand, network and generator outages, and lower wind and solar output increasing the share of electricity generated by higher-priced gas and hydro.
  • In NSW, network and generator outages combined with rebidding drove high price events from 2 to 8 May and led to the price safety net being triggered.
  • A low level of new generation entered the market compared to previous quarters, with a build-up of new generation now expected in the second half of 2024 and Q1 2025.
  • Base futures prices were up in all regions, indicating an expectation of higher spot prices going forward.

Gas

  • Gas markets remain vulnerable to price shocks and supply shortfalls over winter, despite record gas supply flowing south from Queensland.
  • Domestic gas prices increased to $13.76 per GJ over the quarter, influenced by cold weather driving up demand in southern states, and lower gas production from Longford, Victoria.
  • Prices spiked in May and June, reaching $28 per GJ in Sydney on 20 June.
  • Lower than expected supply from Longford over the quarter drove an increased reliance on Iona storage, which ended June at 14.8 PJ at similar low levels to those observed in 2021 and 2022.
  • Low Iona storage prompted AEMO to issue a risk or threat to system security notice, likely to be in place until end September.

Documents