In Adelaide, between the 1st and the 3rd of June, electricity prices spiked from around $100 per megawatt hour to $12 199 per megawatt hour! The official story – all wind power ceased due to weather conditions while other power generators were operating offline or at reduced outputs. Unfortunately, at the same time, the Murraylink Interconnector that transmits power from Victoria was also offline due to a ‘cable fault.’

The price increase comes from the necessity to turn on expensive power generators in order to meet demand. The Wind Farm Performance website does show periods of decreased or low generation on the days in question, however it does not show zero generation during the whole three day period as implied.

Unfortunately, electricity generators have been accused in the past of “gaming” the market. This means that generators hold back power from their facilities which then puts pressure on the system during times of high demand and pushes the wholesale price of electricity up. This increase is ultimately passed on to the consumer. South Australia has previously been said to be the worst state for this type of “gaming.”

According to Energy Matters, between June 2007 and June 2012, Adelaide’s electricity prices increased by 62% and since June last year, there have been a further 18% rise.

With such pressures being put on household budgets, many have called on investigations into the spike with suspicions over the timing. Welfare Agencies are calling for gaming to become illegal. “It is of great concern for SA’s electricity supply that Osborne and Torrens Island Power Stations as well as Pelican Point and Port Augusta can all be operating at reduced or zero output, when the interconnector is also down,” UnitingCommunities spokesman Mark Henley said. “South Australian energy policymakers and the regulator need to be certain that market power is not being exercised in this state and that it is not possible for generator market power to be exercised.”

Once again, the question has been raised as to who actually benefits when the wholesale cost of electricity is increased – consumers are definitely not the winners in this situation.