The introduction of a cap on wholesale electricity prices has led to generators withdrawing offers of supply, which will prolong the crisis.
Australian electricity generators have pushed the cost of wholesale electricity to record highs – triggering the market intervention on unprecedented levels.market in the four mainland states in the National Electricity Market.This is, however, significantly below the wholesale cost of electricity and generators have responded by withdrawing offers of supply.
Mr McConnell said the market is more familiar with this AEMO compensation package, and is calculated differently. Traders also pointed to clauses within the rules that gives the Australian Energy Markets Commission the ability to rewrite sections about compensation – stoking further uncertainty.