Do you have a site in South Australia? Received an invoice with some strange Australian Energy Market Operator (AEMO) charges on it that are astronomically high?
These charges are Frequency Control Ancillary Charges (FCAS) and are applied by AEMO due to extraordinary network events that caused significant additional costs in supplying power. Whilst there have been a few events impacting SA since December with bushfires and extreme weather. The main impact was when Transmission lines between SA and VIC were damaged by severe weather and South Australia was isolated from the National Electricity Market for 18 days.
The increased cost of electricity supply from these events was $81million in December quarter and $227million in March Quarter. This doesn’t get funded from a magic bucket of cash, under Market Rules, when AEMO declares FCAS events, the charges get passed on to large market energy users.
So, for SA, you will have seen an extra charge in January/February, and there will be another about 3 times higher coming in May if it hasn’t already arrived.
f you have already implemented energy efficiency project such as Building Tuner for HVAC and Refrigeration you will be insulated as your usage will have reduced. If not, be prepared for some hurt.
Related Tag: Energy Saving Sydney