.png)
As the first month of the new financial year kicks off, we’re seeing a lot of attention on energy pricing.
Escalating Wholesale Prices
Wholesale prices are expected to continue rising as supply issues remain. The closure of Liddell Power station has stripped supply from the national market, and there are also further delays with Callide Power Station coming back online; originally slated for September 2023, it’s now not likely to be back and fully operational until May 2024.
Renewable Project Delays
Delays seem to be a theme at the moment, with ongoing extensions to deadlines on new renewable projects, which is putting even more pressure on the national energy (NEM).
Looming Power Crisis
Unplanned outages at Energy Australia’s Yallourn power station & AGL’s Loy Yang A are causing price spikes across New South Wales and Queensland. Warnings have also been triggered about potential blackouts and higher prices as aging power plants retire, adding further threat to supply after Snowy 2.0 delay. This is a trend that we’re likely to see play out increasingly across the NEM, as more aging power stations face unplanned outages.
Retailer Collapse Impacts Energy Market
Meanwhile, two energy retailers, QEnergy and Mojo Power, have collapsed and are suspended from trading in the national energy market, resulting in even less competition. These closures impact around 12,000 customers across Queensland, New South Wales, and South Australia.
The Verdict
With global resource constraints, an increase to the cost of supplies, skilled labour shortages, and disgruntled local communities – who are not so keen on having poles and wires run through their gardens – it's clear that several risks abound.
There is no easy fix and it’s important that customers engage a consultant that can help them understand the complexities of the market. For instance, using our no-obligation service, one of our experienced energy experts can analyse your current plan and review the market before calling you to discuss your options. Increases are inevitable for most customers who are coming out of contracts locked in at lower points in the market, but we can assist you with negotiating the best deal for your unique circumstances.
Buying early and not leaving contract negotiations until the last minute will allow customers to forecast effectively and help mitigate against further increases as more outages across the NEM continue to put pressure on wholesale prices for the rest of the year alongside the increased demand as we head into summer.
.svg)
