Liddell's Closure will indeed push up electricity prices....

Liddell's Closure will indeed push up electricity prices.

David Leitch provided some insights on reneweconomy recently analysing Liddell dispatch vs NSW electricity prices and concluding when Liddell is offline, NSW prices are VERY high.

Part of the reason Liddell is closing, leaving aside it is 52 years old (and in need of big CAPEX) is that its cheap coal offtake has ended.

To keep Liddell running a new coal contract needs to be signed which at market price / coal price cap will make it uneconomic both on a short run marginal and long run cost basis.

So, in short, maintaining Liddell and runnning liddel will be economically destructive beyond April.

However, one can never rule out a labor government from doing the unthinkable and buying back the plant - it just would be so expensive and add it to the $200-300m odd million Origin will get for Eraring, quite embarrassing.

Regardless, either outcome is great for AGL - either higher prices or avoidance of decommissioning costs.