National Electricity Market Update

01 Mar 2007Archived News Climate Change Matters

Since the beginning of 2007, NEM spot prices have experienced higher than usual levels of volatility. The high prices have been mainly due to hot temperatures, high summer demand and loss of generation. A comparison of the monthly average spot prices so far this year to the average spot price in financial year 2005/2006 is provided in the table below.

 

Comparison of the Monthly Average Spot Prices
 
State Average Spot Jan 07 Average Spot Feb 07 Average Spot March 07 (to 26 March) Average Spot 05/06
NSW $55.91/MWh $44.76/MWh $53.11/MWh $32.74/MWh
Qld $73.68/MWh $37.58/MWh $49.20/MWh $28.12/MWh
SA $66.49/MWh $52.77/MWh $49.79/MWh $37.76/MWh
Vic $91.46/MWh $47.44/MWh $55.36/MWh $32.47/MWh
Tas $44.30/MWh $52.95/MWh $50.56/MWh $56.76/MWh

 

Future electricity contract prices have generally increased over the last year. The increase in contract prices in the last two to three months has been especially steep due to the volatility in the spot price and supply constraints caused by the ongoing drought. Since January 2007, the 2008 Calendar year futures base price has increased significantly in Queensland, NSW and Victoria and to a lesser extent in SA. The table below shows the financial impact of the increase in the 2008 futures prices on electricity costs if you contracted for a 10GWh supply now rather than at the start of the year. For further information, download the file below or contact your Energetics' Account Manager.

Financial Impact on Electricity Costs of 2008 Future Price Increase
 
State Futures Price at 2nd Jan 07 Futures Price at 26th Mar 07 Cost Increase for 10GWh Supply
NSW $39.07/MWh $46.97/MWh $79,000
QLD $32.91/MWh $45.84/MWh $129,300
SA $43.55/MWh $45.77/MWh $22,200
VIC $38.58/MWh $46.80/MWh $82,200

 

Join the conversation