Australia’s wholesale electricity and gas prices experienced a growth rebound in the June quarter following a period of sharp decline. However, compared to the extreme highs seen a year prior, the prices remained significantly lower due to improved production capacity. According to the Australian Energy Regulator’s (AER) latest wholesale markets report, the average spot prices in the National Electricity Market (NEM) ranged from $65-$148 per megawatt hour during the June quarter. This was an increase from $64-$114 per megawatt hour in the previous three months.
The price increases were attributed to several factors, including higher demand caused by winter, a decrease in solar generation due to seasonal variations, and a reduction in the capacity of coal-fired power plants in Queensland and New South Wales (NSW). These factors collectively contributed to the price hikes observed in the wholesale electricity and gas markets during the June quarter.