After a tumultuous May-July period for the Australian Electricity and Gas Markets, August was a COVID free walk in the park on a sunny day. In fact, August had many sunny days making for milder weather and softer demand for most regions.
The Price Shock experienced by the wholesale electricity market over the May to July period in QLD and NSW has been the biggest shock to the spot market in history, and the forward price movements are rivalling the record setting year of 2007.
The largest electricity Price Shock has occurred to the market in Queensland and NSW, while carbon prices continue to surge in all related certificates and there have been no stopping gas prices.
Victorian network charges have undergone significant change and the new 5-year regulatory period has led to changes to network tariffs occurring on 1 July instead of 1 January each year, thereby aligning with the other States.
Record spot prices put stresses on market players and pool exposed customers. It would not be surprising if a small retailer fails over the next few months, in a similar way as previous shocks.