Via Sky News:
Power prices will rise by up to 50 per cent next year, the federal government has been warned by the Australian Energy Regulator, according to government sources.
The forecasts are even worse than the dire predictions from the CEO of power firm Alinta, Jeff Dimery, who earlier this month said power bills without government intervention would increase by more than 35 per cent next year.
While the regulator is predicting an increase of up to 50 per cent, federal government sources have told Sky News Australia the budget will contain a forecast of between 30 and 40 per cent.
The increased price of gas and coal in the wake of the Ukraine war is being blamed for the rise which is set to come.
Does Chicken Chalmers have any intention of dealing with the gas cartel? And coal after that? Or, is he, once again, bizarrely observing his own failure while doing absolutely nothing about it?
The pressure being brought to bear upon the Evil Gas Cartel is having some effect. Prices have fallen back to the $15Gj range from $25Gj:
Power prices in VIC, SA and TAS are better (though still not cheap) but are yet to meaningfully respond in NSW and QLD owing to the astronomical price of coal which must also be addressed:
Electricity futures are disastrous, with another 50% price rise baked in for 23/24:
And ironies keep piling up. Check this baby out:
Small energy retailers are struggling to acquire hedges needed to ensure their financial stability, as financial intermediaries retreat or ask for more collateral in the face of volatile wholesale electricity prices,
…Retailers’ access to the electricity derivatives they need to protect themselves against surging wholesale prices has been curtailed recently after Macquarie and Bell Potter wound back their ASX energy market clearing services because they didn’t want to be over-exposed to the recent price swings.
Those affected by Bell Potter and Macquarie’s withdrawal from ASX energy market clearing services are turning to the OTC market. Several have told The Australian Financial Review they have been shocked by the collateral – or capital requirements – asked of them.
Shell is a major supplier of hedges to small retailers, but industry sources say the oil & gas giant has sought to toughen its capital demands and is seeking as much as 10 per cent of the value of the contract in collateral deposits.
Shell is a key member of the Evil Gas Cartel that is, in part, driving electricity prices mad. Nice work if you can get it!
Unless Chicken Chalmers does something other than observing his own failure, next winter is going to see a cascade of failing power providers to add to the price spikes and blackouts, even as household income is gutted:
With friends like Labor, workers sure don’t need enemies.
