A selected (and evolving) chronology of the QLD Government’s involvement in the QLD Generation sector

Enertrade was dissolved, with the various PPAs (and dispatch rights) that it managed were transferred to the three remaining generators (Stanwell, CS Energy and Tarong).

As shown on the chart above, the drought had a significant causal relationship (it affected power supplies in Queensland but also around the southern regions as well).

Winter 2007 did see a shortage of available capacity across the NEM.

Particularly noteworthy was the weekend of 22nd and 23rd February, where a rare hot spell saw demand levels up and 5 hours of prices above $2,000/MWh as a result.   Incidentally, it was bidding behaviour over this weekend at Stanwell Corporation called into question in the case of Australian Energy Regulator v Stanwell Corporation Limited (which the AER subsequently lost, but which has flowed on through to more recent changes in the rules).

This noted a slight change in the asset allocation compared with what was suggested in the Shareholder Review (Nov 2010, above).

Tarong Energy Corporation was dissolved, and the assets subsumed into the 2 remaining GOCs, Stanwell Corporation and CS Energy.

On WattClarity we posted numerous articles analysing aspects of the volatility including:
1)  This article looking at volatility over Saturday 12th and Sunday 13th January 2013, which followed this earlier note;
2)

Volatility through summer 2012-13 was so severe that we prepared a detailed 100+ page report that examined this in detail.   Note the reduced price for those who would still like a copy at this point.

Electricity sector policy had been a hot-button issue during the campaign with:
1)  The LNP campaigning for privatisation of Stanwell and CS Energy; and
2)  Labor pledging to keep the GOCs in government ownership, with instead a plan announced to merge 2-into-1 with the intention of saving part of $150M p.a. in overheads as a result (i.e. with the main share of the savings coming from the mooted merger of the three network companies).

There’s this note from the Courier Mail on 19th March, for instance quoting the ACCC chairman:
”THE head of the nation’s competition watchdog says he has grave concerns over the Palaszczuk Government’s plans to merge the state’s coal-fired generators, warning it could drive up power prices”
The article also notes the criticism of the LNP’s plan to privatise them as only 2 companies:
“I said do not privatise the two, go back to the three. We know we can because for a long time we had Stanwell, CS Energy and Tarong. We know we can have three generators and I think that would be the better structure.”

As a result of this, interest progressively waned, as reported here in the AFR on 21st October.

I labelled Saturday 14th January “sizzling Saturday” because of the extremes in temperature, hence high demand and prices that resulted.  A few days later I posted this more forensic look at Queensland Price Volatility on the day.  This post included an animation that looked in detail (dispatch interval by dispatch interval) at generator bidding through the period.

On 11th July on WattClarity, I highlighted the 3 big reasons why wholesale power prices were higher in Queensland than they used to be (including the 3-into-2 merger).