The presence of a significant increase in commodity costs in 2021, combined with the Default Tariff Cap limiting the revenues that suppliers can recover in the domestic market, has contributed to a number of suppliers falling into insolvency in the last 9 months. The Supplier of Last Resort (SoLR) process appoints a new supplier for customers of failed suppliers, with onboarding suppliers able to recover some costs for doing so, such as protecting customer credit balances and working capital requirements. A number of SoLR events will be recovered from consumer bills in 2022-23, with these charges fed through to consumers in their network distribution charges. In this ‘Chart of the week’, we look at how these costs will impact domestic electricity bills in the next financial year.
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Related thinking
Energy storage and flexibility
R1 and L1 revving up the BESS revenues
In our ‘The VFF… Very Fast and Financially rewarding market so far’ Chart of the week, the two new contingency markets, the Very Fast raise contingency FCAS market and the Very Fast lower contingency FCAS, were analysed and demonstrated the high participation of big batteries along with VPPs and DERs....
Low carbon generation
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Commercial and market outlook
Is the sun setting on utility solar?
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Commercial and market outlook
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Low carbon generation
“Ooh, a storm is threatening, My very [interconnection] today”: Can states utilise interconnection to share wind resources?
Penetration of renewables continues to dominate the energy news, as we saw renewables as a proportion of total demand reach new heights this week to a new record of ~70% penetration. In light of this continuing march toward a renewable-dominated grid (building on some analysis we did in Chart of...
Energy storage and flexibility
How long is the ‘Golden time of day’ for batteries?
A key part of the business case for grid-scale standalone batteries is the arbitrage opportunity between low daytime wholesale prices (when renewable energy generation from solar is plentiful) and high evening prices (when the sun goes down and household demand ramps up quickly). The share of battery revenue coming from...
Low carbon generation
MLF changes in NSW in the past decade
MLF, short for Marginal Loss Factor, represents the portion of electricity losses that occur along the transmission network between a connection point and the Regional Reference Node (RRN). Within the NEM, the MLF serves as a metric to quantify these losses along the network, playing a pivotal role in determining...
