Australian Electricity Market Operator blames generators for blackout problems

The national electricity body has claimed the primary reason for power shortfalls throughout Queensland was because of generators “revising their market availability” in response to price caps.

Power supply shortfalls in Queensland and New South Wales are “primarily” due to electricity generators choosing to go offline instead of selling into the system amid a cap on prices.

The Australian Electricity Market Operator (AEMO) in its latest statement on Wednesday, laid blame for electricity shortfalls forecast for Queensland and NSW “primarily” on generators “revising their market availability” in response to price caps.

The AEMO’s intervention to cap wholesale energy prices at $300MW/h was triggered after costs stayed sky-high for too long, with generators then choosing not to supply the system at loss-making prices — in turn creating a shortfall of power.

Officials from the Australian Electricity Market Operator have claimed electricity shortfalls in Queensland and NSW are primarily because generators are not providing the power in order in response to price caps. Picture: Supplied

Generators are instead waiting for the AEMO to tap them on the shoulder to help — a move that triggers a complex compensation formula that works out to be better for business.

The AEMO noted power units going offline for maintenance and higher gas prices, had been factors in the supply shortfall.

“Today, AEMO continues to encourage generators across the (National Electricity Market) … to bid their availability into the market, rather than being directed to do so,” a spokesman said.

As it stands Queensland is still classified at being at risk of rolling blackouts, though the AEMO has highlighted this warning doesn’t reflect work being done to push generators to supply into the market.

On Tuesday, Queenslanders were warned to brace for blackouts as the AEMO warned of possible power outages as the market regulator keeps price caps on generators to prevent runaway wholesale price surges.

Blackouts were averted on Monday night after the regulator took the rare step of directing power generators to increase their supply to meet consumer demand.