👉 Background: The Australian Energy Market Operator (AEMO) manages the energy market across Oz and keeps companies like AGL and Origin in check. It recently capped gas prices when things got outta control.

👉 What happened: Energy generators then stopped producing as much power 'cos they weren't making much money from it (TY capitalism)... which triggered major blackout warnings across the country.

👉 What else: The AEMO asked generators to get things back on track, but it said the market became impossible to operate. So, in a historic moment, they suspended the spot market to stabilise the grid.

What's the key learning?

💡In Australia, power stations sell power at wholesale rates to companies like Origin or AGL who then on-sell to households and businesses. But because the price of power can change, most prices are fixed in advance on pre-determined contracts.

💡All the energy that ain't at a pre-determined price is traded on the 'spot market'. That means it's bought or sold at the cost of wholesale power at ANY single point in time. AKA, the on-the-spot price.

💡Since the spot market is suspended, the AEMO will set a price of electricity, and plans to compensate some generators for producing power. So hopefully all power generators continue to produce enough power and blackouts become an ancient relic.

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