The operator of the Australian energy market has taken the extraordinary step of suspending the electricity market until further notice.
In a market notice released on Wednesday afternoon, the regulator said it had suspended the spot electricity market in NSW, Queensland, South Australia, Tasmania and Victoria after it was “impossible” to operate in accordance with national regulations. electricity.
It means the AEMO will take control of directing which generators should be turned on and when.
Camera Icon Australians have been told to unplug appliances they do not use to save energy. NCA NewsWire / Brenton Edwards Credit: News Corp Australia
Chief Daniel Westerman said the one-time market suspension was the best way to ensure a reliable power supply.
“The situation in recent days has posed challenges for the entire energy industry and the suspension of the market would simplify operations during major power supply chain disruptions,” he said.
The unprecedented move marks the first time the national market has been suspended.
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The equally new imposition of a price cap on continental electricity grids on Monday and Tuesday follows.
Westerman said price caps, along with major unplanned outages and the challenges of the coal and gas supply chain, led to generators removing capacity from the market.
He said an administrative nightmare of issuing legally binding instructions to power generation companies to force them back online has become “impossible” to manage.
WHAT CAUSED THE PROBLEM?
- A large number of power plants are out of order for planned maintenance
- Planned transmission cuts
- Periods of low wind and solar production
- About 3,000 megawatts of coal generation out of action for unplanned events
- The early onset of winter, the increase in demand for electricity and gas.
“We are confident that today’s actions will deliver the best results for Australian consumers, and as we return to normal conditions, the market-based system will once again offer value to households and businesses.”
The last time the AEMO took control of an energy market was in late 2016 to help the South Australian grid recover from a statewide shutdown.
Earlier, Prime Minister Anthony Albanese called on electricity companies to do the right thing for consumers.
Camera icon Anthony Albanese says Australia’s power generators “have work to do”. NewsWire / Monique Harmer Credit: News Corp Australia
It came when his energy minister, Chris Bowen, reiterated that he had been assured that there was a power supply in the system to prevent blackouts.
Speaking to Gladstone reporters on Wednesday, Mr Bowen said AMEO had his full support.
“I have made it clear to AEMO that the government supports any action it decides to take to effectively manage the situation in the best interests of Australian consumers, whether large industrial consumers or residential consumers,” he said.