Why Businesses Should Lock in Energy Rates as Coal Outages Continue
Australia’s energy market remains tight as major coal-fired power stations undergo maintenance across the National Electricity Market (NEM). While some units have returned, several key generators will stay offline through November and December 2025. Restricting supply and driving price fluctuations.
Market Snapshot
Since August, outages in NSW, Queensland, and Victoria have removed over 6,000 MW of coal generation. With units like Bayswater 01, Tarong 01, Loy Yang B 01, and Kogan Creek still offline, the grid is relying more on gas generation and interstate imports. Wholesale prices have already risen, and forward contracts for early 2026 suggest further increases.
Lessons from Past Volatility
The situation mirrors the 2022 energy crisis, when outages and fuel constraints drove sharp price spikes. Even though current outages are planned, the effect is similar: reduced coal availability limits flexibility and amplifies price sensitivity.
What to Expect Through the Remainder of 2025
Outages continuing through year-end leave the market exposed to short-term spikes, especially during hot weather or peak demand. Even as units return in December, it may take time for stability and price relief to return. Forward markets are already pricing in this uncertainty.
Why Businesses Should Act Now
With contract prices firming, businesses should lock in competitive energy rates before further increases. Companies with contracts expiring in the next 12–18 months can benefit from securing new agreements early to avoid potential cost escalation into 2026.
At Energy Brokers, we monitor wholesale trends and run structured tenders to create competition among retailers — ensuring clients secure the best available rates with full transparency and budget certainty.
The Bottom Line
Coal outages and tight supply continue to drive volatility across the wholesale energy market. Acting now can help shield your business from potential price increases as conditions remain uncertain.
Contact Energy Brokers today to discuss your energy strategy and explore competitive options for your next contract.