Generators inflate prices through market power

An analysis of the SA wholesale electricity market between 2008 and 2011 illustrates there was ample excess generation capacity during extreme price periods, suggesting a serious problem with generators exercising market power.

The Energy Users Association of Australia, concerned about the level of generator competition in the NEM, commissioned Carbon Market Economics to undertake an analysis of the wholesale electricity market in South Australia over the period from 2008 to 2011.

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