Yesterday, the South Australian energy market experienced two rare price fluctuations. The first one at 1am took 200,000 SA households and businesses offline for up to four hours. This included the Olympic Dam Mine and other large industrial energy users. The second event, which occurred at 10:30am, was managed by AEMO to ensure market stability. Below is a brief description to help PG Energy customers understand the impact on the SA electricity price.
Why did this happen?
Yesterday’s fluctuations were due to a network constraint and influenced by variations in generation. At the time, the Heywood Interconnector was operating at limited capacity due to maintenance, which reduced the available flow from Victoria into SA. During the first event, the SA network completely separated from the National Electricity Market as a result of this issue. Whereas the second event was triggered by the operation of Origin Energy’s Mortlake gas fired power station, near the SA-Vic border.
AEMO is currently investigating whether intervention pricing will now be required.
Pool Notifications were initiated
Both events triggered an unscheduled energy pool event. PG Energy notified our SA wholesale Pool Monitoring customers by SMS and email – allowing them to reduce energy use to avoid high electricity costs.
So what does this mean for wholesale energy purchasing?
We’ve run the numbers and even without intervention pricing, wholesale customers still come out on top. What’s more, businesses that are able to manage their energy use (when notified in advance) will save even more!
Call us on 1300 08 06 08 to see how your business could benefit from wholesale energy purchasing with PG Energy.
Since this post AEMO has produced a Preliminary Report – South Australia Separation Event 1 December 2016 – Australian Energy Market Operator