‘Do the right thing’ – Albo’s simple solution to blackout standoff
Anthony Albanese has urged energy companies to meet their responsibilities to customers, as the threat of blackouts along the east coast looms large.
As key ministers get set to meet with energy regulators and generators on Wednesday to ensure the power supply is secure, the prime minister gave a warning to providers who were seeking to game the system.
“They have a responsibility to their customers, whether they be households or businesses, to do the right thing,” he told ABC Radio.
“If they’re not doing the right thing, the regulator will take appropriate action.”
Despite the shortfalls in electricity in Queensland and NSW on Tuesday, intervention from the Australian Energy Market Operator avoided blackouts.
The chair of the Australian Energy Regulator Clare Savage said talks were taking place on Wednesday to ensure there was enough power supply.
Despite shortages in some of the market, Ms Savage said generators were doing everything they could to keep the power running.
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“Supply is very tight right now, but we do know there is more generation available that is being bid into the market,” she told the Seven Network.
“The Australian Energy Market Operator is working around the clock with generators to make sure we have enough supply to keep the lights on.”
Ms Savage said she wrote to every generator in the east coast on Tuesday to make sure they understood their responsibilities.
“We saw the situation evolve over the weekend where there was a price cap put into the wholesale market and a number of generators who said they were available suddenly withdrew their capacity,” she said.
“We wanted to be quick off the mark to communicate with these generators to put them on notice and make sure they understand their obligations.”
South Australian Premier Peter Malinauskas said the country’s energy market structure was broken.
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He said his state was spending $600 million on a hydrogen power plant to stabilise energy supply.
“We are in a first-world country that is energy rich, and the fact we’ve now got Australians being told to turn porch lights off to keep the system going, that is somewhat of an embarrassment,” he told ABC Radio.
“We are witnessing market failure on a grand scale.”
The state premier said there was no magic solution to solve the energy crisis, and that all options were on the table.
“There is no silver bullet solution here,” he said. “If there was, the government would have fired that some time ago.”
In a statement on Wednesday morning, the market operator said it would encourage energy generators in the eastern states to bid for availability into the energy market, rather than direct them to.
“Wholesale electricity prices remain capped in Queensland, NSW, Victoria and South Australia due to wholesale prices reaching the cumulative high price threshold,” the statement said.
Australian Energy Council chief executive Sarah McNamara said the current crisis in the sector was unprecedented.
“It’s very challenging for generators to be expected to bring supply online,” she told ABC Radio.
“It’s costing them $400/MWh. If they’re only going to get paid $300/MWh, that’s running at a deep and significant loss.”
In the wake of the energy crisis, the Electrical Trades Union has demanded a review of the national energy market.
State secretary Peter Ong said warnings of blackouts were signs of energy companies gaming the system.
“We are held to ransom by multinational, tax-avoiding gas companies who export massive amounts of gas at exorbitant prices while withholding supply to maximise profit in eastern Australia,” he said.
