Extra price pain is coming to households and businesses after weeks of chaos in the electricity grid, with special payments made by the market operator to prop up power companies set to flow through to electricity bills
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Grattan Institute energy director Tony Wood said the market intervention by the Australian Energy Market Operator would generate significant extra costs that will eventually be borne by households and businesses. To avoid blackouts the operator exercised rarely used powers to override the companies’ withdrawals and directed them to fire up their generators to ensure the lights stayed on across the eastern seaboard.
AEMO’s last significant market intervention was in the summer of 2017-18, which cost $50 million in compensation payments.The costs were calculated by the Australian Energy Market Commission and recouped from electricity retailers - which then passed the cost on to the bills of households and businesses.
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