Energy and market analysis

The Price Shock experienced by the wholesale electricity market over the May to July period in QLD and NSW has been the biggest shock to the spot market in history, and the forward price movements are rivalling the record setting year of 2007.

Victorian network charges have undergone significant change and the new 5-year regulatory period has led to changes to network tariffs occurring on 1 July instead of 1 January each year, thereby aligning with the other States.

Record spot prices put stresses on market players and pool exposed customers. It would not be surprising if a small retailer fails over the next few months, in a similar way as previous shocks.