Some brief analysis of today’s price volatility seen in the South Australian region of the NEM
high gas prices
A timely reminder from Rod Sims (at the ACCC) this week that there are a number of factors driving electricity price higher – not just a single “smoking gun”
When markets operate normally, a sharp rise in the price of any commodity triggers a boom in exploration, development and new supply. But this is not seeming to happen in response to high domestic gas prices. In this article, guest author (Graeme Bethune) examines why.
A starting list of factors that I’d look further into, if I was sucked into the “rabbit hole” of assessing all of the contributing factors leading to the Remarkable Prices seen in Q2 2016 – and which could continue into the future.