Power companies accused of ‘unconscionable conduct’ as they withdraw from grid

Power generators are exploiting the chaotic energy market by withdrawing power supply from the electricity grid, forcing the Australian Energy Market Operator to direct them to fire their plants back up and triggering profitable compensation payments.

But the electricity market is tightly regulated and the AEMO has powers, designed to prevent blackouts, which enable it to force generators to fire up units and start supplying electricity to the grid. Whenever it does this, companies are awarded compensation. “The Australian Energy Regulator reminded [power companies] of their obligations of the law this morning,” Bowen said.

A spokesperson for the Australian Energy Council, which represents major power generators including AGL, EnergyAustralia and Origin, said its members were losing money selling power due to soaring costs of the coal and gas they burn.“The price cap unintentionally means that some plants can’t recover their fuel costs. Participants are legitimately seeking ways to resolve the problem,” the spokesperson said.

price gouging

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Power companies accused of ‘unconscionable conduct’ as they withdraw from gridA massive amount of capacity has been withdrawn from the electricity grid in recent days, triggering compensation payments to power plants to get it back. energy They were trying to be woke, now the rest of us are going broke. Simply replacing existing coal fired power stations with new ones with modern tech would have seen a massive reduction of emissions in the power sector - between 30% and 40%. Would of kept the lights on too. Oh well, learn the hard way. Sounds like a good old fashioned rort. I wonder who enabled this one.
Source: theage - 🏆 8. / 77 Read more »

Power companies accused of ‘unconscionable conduct’ as they withdraw from gridA massive amount of capacity has been withdrawn from the electricity grid in recent days, triggering compensation payments to power plants to get it back. micksfoley Get the greens and labor involved, they’ll know what to do! micksfoley Privatisation for the win micksfoley Zali and Sophie and all the other teals will ring the power companies and offer their homes to be shut off from the grid until the sun shines brightly again.
Source: smh - 🏆 6. / 80 Read more »