Grid emergency on 19 August
We have conducted an enquiry into the causes of the August 19 grid emergency
|Stage: 1 (Enquiry)||Status: Complete||Date commenced: 19 August 2014|
We have conducted an enquiry into the grid emergency on 19 August. The grid emergency coincided with high prices across the country. We were particularly interested in offer changes just prior to gate closure, hedge positions, and the behaviour of interruptible load providers. This enquiry was merged with the enquiry into the grid emergency on 27 May.
The August grid emergency resulted in prices of over $9000 for one trading period. The review considered trading conduct, price forecasts and how transmission pricing was affecting behaviour. The report finds that the structure of the charge used to recover the cost of the HVDC link causes offer behaviour that contributed to the August grid emergency being worse than it otherwise would have been.