The long, proud history of the National Electricity Market has crumbled in a manner that has shocked even the most seasoned participants., the market had been stumbling along. In some ways the imposition of controlled, $300-a-megawatt-hour prices early this week was the writing on the wall.
A circuit-breaker was needed, but the new federal government had few options to hand, and effectively passed the responsibility for the next move to the market operator. The “energy-only” aspect of the NEM that served so well under the original centralised power system – and which meant generators were paid only for their output – had long been seen as unworkable given the rapid influx of weather-dependent wind and solar.
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