How's the price gouging in the energy market? $5000/Mwh?!?!??!?!The analysis also found that while South Australia doesn’t have the highest average volume-weighted electricity prices, it does have the greatest volatility, with an average of 76% more volatility than the other 4 states on the NEM.
This analysis involved Energyse analysing 260 weekly wholesale electricity spot prices on the National Electricity Market (NEM) for the year to September 2023. Pricing was analysed for Queensland, New South Wales, Victoria, Tasmania and South Australia. Extreme event data from the AER was analysed for the period July 2023 to December 2023.
Most extreme price events: South Australia recorded 11 of the 14 events (79%) on the NEM with a price over $5,000/MWh in the 6 months to December 2023. An event is recorded if the average price is over $5,000 for a 30 minute period. For reference, typical electricity spot prices in Australia are about $100/MWh, meaning that these events represent a 50x spike in price.
Greatest price volatility: South Australia has the greatest price volatility of any state in the NEM for the year to September 2023, with a volatility 76% higher than the average of the other 4 states (QLD, NSW, Vic and Tas).
Highest prices: NSW has the highest wholesale electricity prices, at an average rate of $115/MWh for the year to September 2023.
Second highest prices: Queensland has the second highest wholesale electricity prices, at an average rate of $113/MWh for the year to September 2023.
