Uncertainty is prevailing in wholesale electricity markets across the NEM, with the future of the Hazelwood brown coal power station potentially being decided by the end of this week. Hazelwood’s owner, French company Engie, is meeting this Thursday (20/10/2016) to decide on the closure of one of the largest, cheapest and dirtiest generators in Australia.
Whilst the market will likely withstand the closure of Hazelwood from an energy security standpoint, removing some of the cheapest power from the generation mix will almost certainly result in sustained upward pressure on wholesale electricity rates in Victoria, NSW and SA.
Major electricity retailers are already bracing themselves for the uncertainty. They are ceasing quoting activity from Wednesday and Thursday pending the outcome of the meeting.
And so this crazy electricity market continues its volatile trend upwards..…
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