AER: report into high prices in NSW wholesale electricity market

Short-term fuel issues and longer-term market challenges have combined to cause sustained high prices for wholesale electricity in NSW.

In its first report (NSW electricity market advice) to the COAG Energy Council under its new wholesale market monitoring powers, the AER found that while competitive pressure on wholesale prices has fallen, there is no evidence to suggest that prices are being driven by rebidding close to dispatch or physical or economic withholding – behaviours more usually associated with the exercise of market power. However, further work is needed to understand the impact of changing market features…

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