1. What is the AEMO?
The Australian Energy Market Operator (AEMO) is responsible for ensuring the reliable and secure operation of Australia's energy systems. It manages the electricity and gas markets, making sure that energy is delivered efficiently from producers to consumers.
2. How does the energy market work?
The energy market is like a stock market, but for electricity. Power generators generate electricity and sell it in this market.
The AEMO oversees this process to ensure a balance between supply (how much electricity is produced) and demand (how much electricity people need). Prices in the market can fluctuate based on various factors, such as the availability of renewable energy sources, weather conditions, and overall demand.
3. How does this affect the electricity prices for apartment residents?
The price you pay for electricity in your apartment per kilowatt hour (kWh) is influenced by the wholesale prices in the energy market. Retailers buy electricity from the market and then sell it to consumers like you.
If wholesale electricity prices go up due to high demand or low supply, retailers pass these costs onto consumers, leading to higher electricity bills.
The AEMO's role is to ensure the market operates smoothly and efficiently, helping to stabilize prices and prevent extreme fluctuations.
In summary, AEMO manages the energy market to ensure a steady supply of electricity, and this market influences the prices you pay for electricity in your apartment.
4. A bit about embedded electricity networks in apartment buildings
Some apartment buildings have embedded networks and Body Corporate that is able to purchase wholesale electricity in bulk and administer the billing through a third party billing agent to residents in the building. This can result in the Body Corporate being able to offer residents more attractive electricity rates compared to retail rates being offered by other electricity retailers.
The Body Corporate engages a third party billing agent to ensure the Body Corporate is complying with the Energy Rules when issuing bills and collecting funds, and there are additional costs paid to the third party billing agent for that billing service.
Check out the AEMO whole sale electricity dashboard to see what the current wholesale electricity price per megawatt hours (MWh) is (One MWh = 1,000 kWh).
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