Parallels between the Australian Open and the NEM

The planets have aligned leading to unprecedented market prices in all mainland States, that will add to growing cost of living pressures. Despite election promises of lower power prices, the immediate future is moving in the opposite direction.

Summers are often a very strategic quarter, and this summer is no exception. Our reading of the tea leaves suggest that Snowy Hydro is successfully keeping NSW spot prices contained, to leverage their position.

Origin Energy announced early last year they planned to run Eraring less often. Despite a unit outage since August, Origin is sticking with the strategy. In the meantime NSW spot prices have been strong, and forward prices have been escalating.