Western Australia regulator probes battery charging practices that may be inflating electricity prices
The Economic Regulation Authority has warned the owners of WA’s large-scale batteries of “unusual” charging behavior that appears to be pushing wholesale power prices higher.
Western Australia’s Economic Regulation Authority has placed the owners of the state’s 1,400 MW of large-scale batteries on notice after detecting “unusual” market behavior that may be driving up wholesale electricity prices. ERA chair Steve Edwell explained that the inquiry focuses on the bidding practices of Synergy, a state-controlled utility, and Neoen, a French company, after a midnight charging event by Synergy’s batteries sent spot prices from $120 to more than $350 per megawatt hour.
The regulator is assessing whether the batteries’ bid timing, charging cost accounting and potential portfolio-bidding tactics breach market rules. Experts such as Ralph Sarich of Rystad and Peter Tickler of Gridcog argue that batteries can flatten daily price curves but cannot lower prices when overall supply is tight. The authority’s white paper highlights that batteries differ from traditional generators because their primary cost is the missed opportunity to sell later at higher prices. ERA officials say they will investigate any non-compliance and may take enforcement action to preserve a functional market.
Why it matters
Battery bidding practices could affect electricity costs for consumers and the fairness of Western Australia’s power market.
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