- AEMO can confirm that administered price caps are in place in Queensland, New South Wales, Victoria and South Australia. This is due to wholesale electricity prices reaching the cumulative high price threshold, triggering a $300 megawatt hour price cap under the National Electricity Law and the National Electricity Rules.
- The price cap will remain in place at least until the end of the trading day (4am), after which it will only remain in place if the cumulative price threshold is still exceeded. The market will be notified when the cap is lifted.
- As a consequence, some generators revised their market availability in New South Wales and Queensland for today. This has contributed to forecast supply shortfalls, along with generation units being offline for planned maintenance and repairs.
- Supply reserve shortfalls (lack of reserve 2 and 3) are currently forecast in Queensland and New South Wales this evening (approximately 5pm to 9pm).
- AEMO has issued market notices to encourage more generation at these times.
- AEMO will take further actions to improve electricity reserves, including directing generators into the market, which helped meet electricity shortfalls in Queensland and New South Wales yesterday (13 June).
- AEMO will continue to monitor reserve conditions closely in Queensland and NSW, and more broadly across the National Electricity Market, providing further updates should conditions change.
- In the gas markets, gas prices for the Sydney Short Term Trading Markets (STTM) and Victoria Declared Wholesale Gas Market (DWGM) remain capped at $40/GJ after reaching cumulative high price thresholds in Victoria (30 May) and Sydney (7 June).
- This will remain capped in both markets until the cumulative price falls and remains below the threshold for a day.
Please refer to the Lack of Reserve (LOR) fact sheet. Further information regarding administered pricing is available on the AEMO website and information regarding the compensation guideline is available on the AEMC website.
ENDS
For NEM wholesale electricity prices, the cumulative price threshold is $1,359,100 over a 7-day period (2016 trading intervals). This triggers an administered price cap of $300/MWh under the National Electricity Rules.