Midnight power raid by big batteries in regulator’s crosshairs
Batteries have been hailed as an antidote to price pain but strange charging behaviour in WA has pushed the market higher. Now the regulator is preparing to intervene.
The Economic Regulation Authority (ERA) in Western Australia has imposed a $1.2 million fine on state-owned electricity utility Synergy for inflating electricity prices through its large-scale battery system. The regulator found that Synergy's software error caused the spike in wholesale power prices, resulting in an extra $850,000 in revenue for the company.
Over an eight-month period starting in late 2023, the conduct increased wholesale energy costs for everyone by about $9.5 million. The issue has gained attention as large-scale battery capacity in WA's main grid has grown to about 1,400 megawatts, often setting prices for the grid. ERA Chair John Edwell stated that while batteries offer benefits like storing surplus renewable energy, they also pose risks if not managed properly.
He emphasized the need for a well-functioning market and investigations into any non-compliance with electricity system and market rules.
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