On the 24 October we wrote an article about the market poking the bear and acting as if it is tone deaf to Government actions. Well, it appears the market had a Cochlear ear implant, and is now listening.
After the energy market closed for trading on Tuesday 8 November, news broke that the Federal Treasury secretary Stephen Kennedy recommended to government that market intervention be adopted to drop power prices. Dr Kennedy told Senate estimates that … “interventions that directly address the higher domestic thermal coal and gas prices are more likely to be optimal” rather than other policy responses which may contribute further to inflation.
Yesterday, the market experienced the biggest fall in wholesale forward market prices in history. The growing prospect of price caps planned to be announced by the Government by the end of November, has had a dramatic impact.
Here are the closing prices for yesterday …
The daily price movements were …
The record setting historical downward daily price movements occurred on …
The maximum price level reached over the last few months are summarised below:
Stay tuned for the continuation of the wild ride.
