Queensland Electricity Market Facing Price Pressures
With the turmoil currently affecting Queensland, it is having a knock on affect to electricity prices.
Coal costs have hit a 12 month high, part due to shipping issues and part due to difficulot production conditions. The availability of coal is having a knock on affect to the cost of producing and generating electricity. Electricity generation both in Queensland and throughout Australia is primarily driven by coal fired power stations.
Short term, the only customers that will be affected by this is likely to be Commercial and Corporate customers who are due to come out of contract in the next 6-8 weeks. It means that any renewal price they are negotiating is likely to be significantly above last years market rate.
The recommendation for customers likely to be affected by this price uncertainty is to negotiate short term contracts, to tide their supplies over for the next 3-6 months.
For all small business and residential customers, there will be no short term pricing impacts. However, for Queenslanders expecting a 5-6% increase in July this year, there could well be Government regulated revisions to this, to account for increased generation costs which the State will see over coming months. Not to mention the vast costs required to further invest in the network infrastructure.