00:00How the electricity grid operates is a mystery to many, but those keeping an eye on it have
00:08found power generators could be reaping more profit than they're allowed.
00:13The consequences of market power basically is that consumers pay more.
00:16In Western Australia, generators are paid to ensure they can provide electricity when
00:21required and are only allowed to sell the electricity at cost.
00:25But according to WA's economic watchdog, that rule is being breached more and more frequently.
00:31The overall impact of generators mispricing their energy in the past two years has been
00:40an overall market impact of $110 million.
00:43In the most recent case, Steve Edwell alleges the state's largest privately owned generator
00:48Blue Waters Power has increased the cost of electricity by $30 million over eight months
00:55and is proposing a $5 million fine.
00:58Blue Waters is disputing the findings, saying the company was facing coal and water shortages
01:03and actually lost significant profits as a result of reduced production.
01:08Alinta is also accused of driving up costs by $66 million in eight months, which it's
01:14also disputing.
01:15One thing both the regulator and industry do agree on is the market and the rules have become
01:20increasingly complex with the uptake of renewable energy.
01:24Nationally, the rules are different, but the Australian energy regulator says there are
01:28some providers driving up prices to maximise profits, which, while legal, can be inefficient
01:34and harmful for consumers.
01:36The regulator says it's part of the reason why electricity prices can remain high despite
01:41increasing renewable generation.
Comments