Australian Energy Regulator Suspends Market As East Coast Power Crisis Deepens
In an extraordinarily move, the Australian Energy Market Operator (AEMO) has suspended the spot wholesale power price market until further notice.
In a statement on Wednesday, AEMO chief Daniel Westerman said it was no longer possible to reliably operate the power grid through regular market mechanisms.
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“In the current situation, suspending the market is the best way to ensure a reliable supply of electricity for Australian homes and businesses,” he said.
“The situation in recent days has posed challenges to the entire energy industry and suspending the market would simplify operations during significant outages across the energy supply chain.”
“We are confident today’s actions will deliver the best outcomes for Australian consumers, and as we return to normal conditions, the market-based system will once again deliver value to homes and businesses,” Mr Westerman said.
Meantime, NSW Treasurer Matt Kean has penned a statement supporting the decision to suspend trading on Australia's energy market.
“I welcome the Australian Energy Market Operator’s (AEMO) decision to suspend the electricity market across jurisdictions including Queensland, Victoria, South Australia, New South Wales and the ACT
"This decision will help prevent energy companies from putting energy reliability at risk by unnecessarily withdrawing supply,” he said.
“This comes after the Australian Energy Regulator yesterday reminded generators of their obligations under the National Electricity Rules.
I expect power companies to do the right thing by their customers and the country,” Kean said.
While suspended, AEMO will apply a pre-determined pricing schedule for each jurisdiction and apply a compensation regime for eligible generators who bid into the market.
The market suspension will be reviewed daily for each state and territory.
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