From the Turnbull Government:
“The Turnbull Government has asked the Australian Energy Regulator to examine the bidding practices of New South Wales generators to ensure consumers aren’t getting ripped off.
The request comes on the back of reports that NSW power generators have been bidding and selling their electricity in a manner that is adding around $30 to $35 per megawatt hour to spot prices.
In light of these reports, it’s important to make sure electricity generators are playing by the rules.
Spot prices mainly effect big business but if inappropriate bidding practices are repeated over an extended period of time it can also have an effect on household bills.
The request to look into the practices of generators in NSW is an extension of the work already underway with the AER examining generator bidding behaviour across the National Electricity Market (NEM) following the closure of the Hazelwood power station in March this year.
As part of this most recent request by the Turnbull Government, the AER has also been asked to provide advice to the COAG Energy Council, as appropriate, on any factors impacting on the efficient functioning of the market by November this year.
Whether it’s getting a better deal for consumers with the retailers, securing domestic gas supplies, limiting the power of the companies that own the poles and wires or making sure generators are not abusing their market power, the Turnbull Government is doing all that it can to deliver an affordable and reliable energy system.”