AER Details Price Gouging by SA Gas Generators
Source: Reneweconomy & AER, 29 November 2016
The Australian Energy Regulator has found that re-bidding by leading gentailers Origin Energy and AGL Energy in the South Australian electricity market in August and September caused price spikes that loaded more than $17 million of additional costs onto consumers and other generators.
There is some controversy over this FCAS requirement, mostly because of the ability of the major generators to exploit the market.
The combined cost of these price spikes to South Australian generators and consumers was around $17 million. The 35 MW local regulation requirement imposed by AEMO has cost South Australia generators and consumers around $47 million since its introduction in October 2015.