The CEO of Stanwell was quoted yesterday in Reneweconomy.com.au stating that “bidding direction ended on 30 June 2019” in reference to the direction given to Stanwell form the Queensland Government in May 2017 to lower wholesale prices.
Spot prices have been soft since 1 July 2019 across the NEM and there is currently no evidence to suggest that Stanwell (and CS Energy) have immediately reacted to the lift of the direction.
When the direction was first given by the Queensland Government in 2017 to Stanwell, energy prices materially came down and generally speaking have been less volatile. Key assets such as Swanbank E and Wivenhoe have been utilised by Stanwell and CS Energy to stop prices spikes above $300.00/MWh.
There is now the potential for Stanwell and CS Energy to utilise their large generation portfolios to potentially increase earnings through higher energy prices.
If you would like to know more about the potential impact that the lifting of the direction may have on Australian energy prices, please contact Edge Energy Services on 07 3905 9220 or 1800 334 336.