Energy market freeze

Unprecedented action to try to solve crisis

THE Australian Energy Market Operator has taken the extraordinary step to suspend the electricity market until further notice.

In a market notice issued on Wednesday afternoon, the AEMO declared it had suspended the electricity spot market in NSW, Queensland, South Australia, Tasmania and Victoria after it became “impossible” to operate in accordance with the National Electricity Rules. Earlier, Anthony Albanese called on energy companies to do the right thing as the electricity system remains under pressure.

Energy Minister Chris Bowen insisted the threat of blackouts across Australia’s east coast had eased.

While outages have so far been averted thanks to the Australian Energy Market Operator’s ability to reroute generators to plug shortages, it’s become apparent some generators are withdrawing from the market instead of putting in.

As a result, energy regulators have been forced to write to generators to remind them of their obligations.

On Wednesday, the Prime Minister said he too wanted to make sure generators “got the message” they had a job to do.

“They have a responsibility to their customers, whether they be households or businesses, to do the right thing,” Mr Albanese told ABC Radio.

“And if they’re not doing the right thing, the regulator will take appropriate action.”

Speaking to reporters in Gladstone, the Energy Minister said he was “pleased” the country had so far avoided blackouts but conceded the situation was far from over.

“I am pleased that we have so far been able to avoid any lightning events or blackouts,” Mr Bowen said. “AEMO advises me and it will likely continue to be the case that we will be able to avoid blackouts. I’ve said repeatedly this week the system is under pressure.”

Australia’s energy crisis has been caused by a “perfect storm” of conditions including a global gas shortage from Russia’s war in Ukraine and outages at 25 per cent of our coal-fired power stations.

The PM insisted the problem could have been avoided.

“A decade of the former government meant a decade of lost opportunity of investment that didn’t happen. We have an energy grid that wasn’t made fit for purpose for the 21st century,” Mr Albanese said. “We have a plan to deliver on that, we want to work with state governments but also businesses.”

Greens senator Sarah Hanson-Young said energy producers were “gaming the system” and Australia was being “held hostage” by the “broken system”.