Wholesale energy prices experienced sharp ups and downs this past quarter.

The Australian Energy Regulator's (AER) latest report for July to September shows prices initially rose due to high demand during July and August's winter months but later eased as milder weather reduced demand from late August.

The period saw significant price volatility, with 54 high-price events. 

AER Board member Jarrod Ball has attributed this to “a combination of high demand, low wind, and network outages during peak demand periods”. 

Electricity prices fell in New South Wales (25 per cent), Victoria (9 per cent), and Tasmania (12 per cent), while South Australia (35 per cent) and Queensland (5 per cent) saw increases. 

Prices across all regions remained higher than in the same period last year.

Forward wholesale electricity prices for 2025 declined slightly, as additional supply entered the market. 

An extra 972 megawatts (MW) of capacity, mainly from wind, gas, and batteries, was added compared to last year. 

Overall, 1,445 MW of new capacity became available, including 600 MW from batteries, 729 MW from wind, and 116 MW from solar. However, these units will take time to reach full output.

In the east coast gas market, spot prices fell by 9 per cent to $12.51 per gigajoule (GJ), driven by warmer weather that kept average gas demand low at 103 petajoules (PJ), similar to last year's third-quarter demand, which had reached a 10-year low.

Pipeline flows south from Queensland were strong in July but reversed northward from late August due to easing demand in southern states. 

The Australian Energy Market Operator (AEMO) lifted its system security notice on 23 August after declaring it in June.

Mr Ball also noted the Iona gas storage facility's recovery: “Although the Iona gas storage facility dropped to very low levels in July and August to meet the increased demand that comes with cold winter conditions, it’s pleasing to see that participants were able to refill and return it to normal levels over August and September when milder weather reduced demand”.

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