QLD and SA Electricity Prices Cause for Concern
Electricity wholesale prices in Queensland and South Australia have been rising disproportionally in recent times accordingly to a statement released by the Energy User Association of Australia (EUAA).
South Australia is battling lack of competition in its market with AGL owning nearly a quarter of all generating assets. The closedown of Pelican Point and the recent announcement that Alinta Energy's coal-fired power stations at Port Augusta are to be closed have seen prices rise to 80% higher than Victorian prices.
Similarly, Queensland prices have been increasing steadily in recent times, though this is not due to lack of supply. The EUAA says that the state-owned generators, CS Energy and Stanwell Corporation, are to blame for driving up prices. Queensland had anticipated prices to increase in-line with increasing gas prices as the LNG project in Gladstone begins to ramp-up. Queensland pricing now sits 60% higher than Victorian prices by contrast.
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