Domestic energy – political gridlock but forward pricing is easing

By Justin Still
Updated August 8 2017 - 9:05am, first published 8:37am
Justin Still
Justin Still

The sharp increase in domestic electricity and gas prices has received plenty of press coverage recently. Power prices rose dramatically through to mid-2017 as a result of factors including a changing generation mix (more renewables, fewer thermal plants), increasing gas costs for gas-fired power generators, weather events, transmission constraints, and in Queensland increased demand as well as generation concentration. In addition, the market price of renewable energy certificates rose dramatically. 

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