In Tasmania the spot price averaged $69/MWh. This represented a slight decrease from the previous week. A reduction in demand, along with increased capacity priced below $50/MWh, contributed. Average spot prices in the other regions ranged from $19/MWh in Queensland to $26/MWh in South Australia. These prices were consistent with the previous week.

The price volatility index was below the longer term trend in all interconnected regions. The price volatility index in Tasmania remains lower than for the other regions.

Turnover in the energy market was around $91 million, while the total cost of ancillary services for the week was $569,000 or 0.6 per cent of the total turnover in the energy market. The cost for ancillary services in Tasmanian totalled $130,000 or 0.9 per cent of the energy market turnover for that region.

Demand forecasts produced 4 and 12 hours ahead varied from actual by more than 5 per cent in around two thirds of all trading intervals in South Australia, 20 per cent in Tasmania and much lower in the other regions. Significant variations between forecast and actual prices occurred in 17 or 5 per cent of all trading intervals.

The analysis is provided for information only. It does not constitute business advice and should not be relied upon as a substitute for obtaining detailed analysis or advice about the operation of the national electricity market. Neither NECA nor any of its employees make any representation or warranty as to the accuracy of the information in the analysis, or its conclusions.

NECA would welcome comments on the information contained in, or the layout of, the report. Comments should be sent to Peter Adams or Mark Wilson, NECA, level 5, 41 Currie Street, Adelaide SA 5000 (email padams@neca.com.au; mwilson@neca.com.au; fax (08) 8213 6300).