The New Year brought with it a reduction for 2018 Base Settlement Prices across all states and a softening of 2019 Base Settlement Prices for all states except SA. This was despite an exceptionally warm month for Australia as a whole, being the third-warmest January on record. January was amongst the ten warmest on record for QLD, NSW, VIC and SA. Interesting to note that demand was up across all states, with monthly average wholesale prices for SA and VIC climbing to $158.76/MWh and $133.48/MWh respectively. Both states have already experienced precarious supply and demand issues with an extreme weather on 19 January resulting in AEMO calling on Reliability and Emergency Reserve Trader (RERT) providers to be on standby that afternoon to deliver contingency support if required to provide additional supply across VIC and SA. Later periods in January also saw VIC and QLD maximum demand rise above 9,000MW.
With wholesale market prices trending down Energy and Management Services see that the next couple of months may be a good time to secure electricity contracts.