Oct 23, 2018
FY-18 ended with sharp electricity price increases which have been a result of unplanned outages in NSW. The beginning of FY-19 was equally turbulent, as the NEG announcement in August pushed the prices even higher. Despite the new renewable generation coming to the market, the electricity demand and supply balance continues to be tight. Below average rainfall and elevated gas prices lead us to expect a volatile summer.
In August COAG rejected the draft of National Energy Guarantee (NEG), market participants anxiously await new energy policy. Rejection of the NEG has added much uncertainty to the already volatile market and has sent prices on a 45° trajectory.