News Archive

Market Updates Q4 19

Jan 17, 2020

Cal19 ended on a positive note with significant price declines in November and December. Outages have been resolved, the fuel prices have decreased and weather in Victoria has been favourable. Nonetheless, the continuous drought and above-average temperatures forecasted for February, are still posing a significant risk. We expect electricity prices to start increasing and we expect price volatility to return at any moment as a result of rising temperatures.

Energy Intelligence views current electricity prices as a buying opportunity and we recommend all customers with electricity contracts expiring in 2020 to start procurement processes as soon as possible. We expect Cal-21 and Cal-22 prices to start increasing around February.

Customers with gas contracts expiring 2020 are recommended to wait and observe the market but to be ready to start the procurement process at a short notice. The linkage of local gas prices to the global LNG prices may result in sudden gas price increases.

Contact us today to design your energy purchasing strategy.

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