A massive amount of capacity has been withdrawn from the electricity grid in recent days, triggering compensation payments to power plants to get it back. energy
Power generators are exploiting the chaotic energy market by withdrawing power supply from the electricity grid and waiting until strict rules to prevent blackouts kick in, forcing the energy market operator to direct them to fire their plants back up and triggering profitable compensation payments.
But the electricity market is tightly regulated and AEMO has powers, designed to prevent blackouts, which enable it to force generators to fire up units and start supplying electricity to the grid. Whenever AEMO does this, companies are awarded compensation.in a public statement yesterday when it said that directly after price caps were imposed on power companies “available offers were reduced”.
“The Australian Energy Regulator reminded [power companies] of their obligations of the law this morning,” Bowen said. A spokesperson for the Australian Energy Council, which represents major power generators including AGL, EnergyAustralia and Origin, said its members faced a “complex issue” but were seeking solutions to the power crunch.
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