Australian Energy Council slam claims they’re profiteering from the energy crisis

The Australian Energy Council, which represents power generators, says claims its members were looking to profit from the power crisis were wrong.

Australia’s electricity generators have hit back at claims they have been profiteering from the energy crisis through their peak body.

About 1900 megawatts of power from coal-fired plants has also come back into the national system since Wednesday.

The Australian Energy Council, which represents power generators, said claims its members were looking to profit from the system were wrong.

Earlier this, Victoiran Energy Minister Lily D’Ambrosio said companies lost 2000 megawatts of power from the market once the operator put a cap on prices in Victoria to stop spiralling prices.

Lily D'Ambrosio, Victorian Minister for Environment and Climate Change, speaks to the media at Parliament House in Melbourne. Picture: Andrew Henshaw

“What we’re seeing is some strange behaviour out there where some generators have decided not to offer into the market or the power that they’re currently sitting on,” she said at the time.

“That’s one of the topics that was discussed at the energy ministers meeting last week.

“In fact, we decided to ask the Australian energy regulator to look into bidding behaviour of the generators.

Ms D’Ambrosio said governments were keen to make sure there was any gaming of the system, with other states also accusing generators of benefiting from the crisis.

But on Friday, AEC chief executive Sarah McNamara rebuffed these claims, pointing to extreme conditions in the National Electricity Market.

“In these conditions, the price cap proved counter-productive, because it seriously interfered with the market’s functioning,” she said.

“When the cap was applied generators and large-scale batteries were faced with difficult decisions on how to operate.

AEC chief executive Sarah McNamama rebuffed claims they were profiting from the crisis.

“Some withdrew their capacity from the normal dispatch process but remained available to be directed back into the market by AEMO.

“There is a widespread view that this withdrawal is related to generator profiteering around different forms of available compensation.

“The AEC rejects that view,.”

The council said that while the price cap was in place, generators who had limited supplies of fuel, water and large-scale batteries were being used in a way that risked their energy reserves being exhausted.

The AEC said they removed their supply from the normal process and believe this was done in consultation with the Australian Electricity Market Operator.

“Following the market suspension, AEMO is effectively managing these limited fuel stocks, and we understand generators are progressively re-presenting their availability into the normal systems which will assist AEMO’s oversight of the grid,” Ms McNamara said.

“After a period of re-stabilisation, the AEC expects the market to be able to successfully restart without the price cap in place.

“All parties agree that throughout this time collaboration and communication between industry and AEMO has been excellent.

“The Australian Energy Council emphasises that this has been an extremely challenging time for all involved in the energy sector, including generators.

“We are pleased to note that since Wednesday we have seen the return to service of some 1,900 megawatts of coal plant previously under maintenance.

“Generators are working around the clock to return more plant as soon as possible.”