Australian energy giant AGL has warned proposed sweeping changes to the operation of the country’s electricity market may result in higher prices for customers.
Following major disruptions to the energy grid in June—with the Australian Industry Group describing it as “apocalyptic“—authorities were forced to suspend the National Electricity Market (NEM) to ensure households and businesses could get access to power.
The NEM is integral to Australia’s electricity network and comprises a bidding system between wholesale energy providers and retailers, who in turn, supply electricity to the customer.
In response to the near-crisis, the Energy Security Board proposed a new way of running the NEM—by implementing a “capacity mechanism” by 2025….