The threat of Hazelwood being shut down as early as April next year may not be a threat to Australia’s electricity supply…. but its certainly impacting confidence and delivering more uncertainty to an already complex wholesale market. This uncertainty will invariably cause significant wholesale price increases in the short term that will be passed onto commercial electricity customers.
In fact, this morning we have witnessed several electricity retailers withdraw their offers from the market in all states. Some have stopped pricing altogether.
Over the weekend Fairfax media reported that the Hazelwood power station in the Latrobe valley could close as early as next April. Senior management at Engie, the French company which is the majority owner of the brown coal-fired power plant, has emphasised that no decision has been made yet.