Aussie regulator caps Queensland electricity prices
The Australian Energy Market Operator (AEMO) on June 13 enforced a cap on wholesale electricity prices in Queensland in an attempt to control surging prices.
Electricity spot prices in Queensland breached the accumulated costs threshold of A$1.359mn ($0.95mn), accumulated over seven days, on June 12, triggering an administered price cap of A$300/MWh in accordance with the National Electricity Rules, AEMO said.
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The price cap was supposed to remain in place at least until the end of the trading day on June 13, after which it will only remain in place if the cumulative price threshold is still exceeded.
As a consequence of the price cap, available offers from generators were reduced, contributing to a forecast supply shortfall, AEMO said in a second update. To maintain power system security and reliability, AEMO said it is using its powers under the National Electricity Rules, including direct generators, to alleviate the lack of reserve conditions. "The cumulative high price threshold is forecast to be exceeded in some other national energy market regions this evening," AEMO said.
Earlier this month, AEMO capped gas prices in southeastern states. It also announced a guarantee mechanism to call on more gas supply.