New figures released by the Department of the Environment and Energy have revealed that wholesale gas and electricity prices have fallen significantly in 2019.
Two reports released last week by the Australian Energy Market Operator (AEMO) Quarterly Energy Dynamics Q3 2019 and the Australian Energy Regulator (AER) Wholesale Markets Quarterly report for Q3 2019 both found gas prices were at their lowest levels since 2017.
The reports say that wholesale gas prices in the eastern states fell significantly in the third quarter of 2019, averaging $7.95 per gigajoule (GJ) over the quarter, down from $9-10 per GJ for the past year.
Minister for Energy and Emissions Reduction, Angus Taylor said the new figures showed there was improved competition in the gas sector.
“The Commonwealth Government is doing its part to help secure gas supplies, encourage new investment in dispatchable reliable generation, and put downward pressure on wholesale prices,” Mr Taylor said.
The reports showed electricity prices had also fallen across the National Electricity Market (NEM) in the third quarter of 2019, with prices in Queensland and South Australia their lowest since 2016.
However the reports also revealed the downward trend did not continue in Victoria, where electricity prices were higher than comparative 2018 levels.
Mr Taylor said new measures would also be taken to strengthen Australia’s domestic gas supplies, including a review of the Australian Domestic Gas Security Mechanism (ADGSM) and exploration of a prospective national gas reservation scheme.
“We are also progressing the Underwriting New Generation Investments program to increase the level of dispatchable generation in the market, and maintain downward pressure on wholesale electricity prices,” Mr Taylor said.
AEMO’s 38-page Quarterly Energy Dynamics Q3 2019 can be accessed at this PS News link and AER’s 66-page Wholesale Markets Quarterly report for Q3 2019 at this link.
