NEM Pricing ReportNEM Pricing Report | 13th December 2022
Fuel costs and NEM pricing
Oakley Greenwood was commissioned by the Minerals Council of Australia to analyse NEM price outcomes and ‘price setter’ generators for calendar 2022.
The NEM pricing analysis found that gas, coal and hydro were the dominant price setters. Gas set the highest prices but for a low percentage of time. When coal stations set relatively high prices in May, June and July, the report noted further analysis is required to understand the interaction between commercial and short and long term drivers of those prices.
Press reports have claimed our report blames generators for the high prices. It is self-evident that generator bid prices set Spot Market prices, but it is the reasons that matter and we (deliberately) did not draw any conclusions on these. The report also briefly discussed principles and options for intervention. Read the NEM Pricing Report here.
Read commentary on LinkedIn here.