The energy market operator has taken the extraordinary step of suspending the spot electricity market. 

It comes after warnings since Monday that many of the eastern states could face widespread blackouts.

In a statement this afternoon, the Australian Energy Market Operator says it has taken the extraordinary step because “it has become impossible to continue operating the spot market in accordance with the national electricity rules (NER)”.

Queensland’s Energy Minister says the decision will avert power outages for the time being.

The rising cost of wholesale electricity prices is being blamed for the current crisis, as well as a shortage of generators which are out for maintenance.

In a statement, Mr de Brenni added one unit is scheduled to return to service later this week.

AEMO CEO Daniel Westerman said the market suspension will be temporary.

“In the current situation suspending the market is the best way to ensure a reliable supply of electricity for Australian homes and businesses,” he said.

It was forced to direct 5 GWh through direct interventions yesterday and says it was no longer possible to reliably operate the spot market or the power system this way.

— Josh Bavas (@JoshBavas) June 15, 2022

More to come.