The national energy market could be restored to regular operations by the end of Wednesday, with the operator seeking ways to bring the grid back to normal functions.
The Australian Energy Market Operator said it could end the suspension of the spot market as soon as Wednesday, if key conditions were met.
Following talks held with generators on Tuesday, AEMO said it was looking to ensure short-term issues would not re-emerge if the suspension was lifted.
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“AEMO’s next step will be to move to a period of monitoring normal dispatch pricing within the suspension period, after notice to the market,” the operator said in a statement.
“If AEMO is confident the criteria are being met, the next step is formally remove the market suspension and resume normal operation under the market rules.”
Even if the suspension is lifted at the earliest opportunity, the market operator warned of future issues with the electricity grid going forward during the winter period.
It said it would continue to monitor conditions across all regions of the national energy market.
“Irrespective of market operations, underlying factors mean there may continue to be challenges managing supply and demand,” the operator said.
While the operator said there were sufficient reserves of energy for Tuesday night, conditions remained dynamic.
It comes as the consumer watchdog was given additional powers by the federal government to monitor energy pricing in the wake of the crisis.
Treasurer Jim Chalmers said the expansion of the Australian Competition and Consumer Commission’s powers was to crack down on behaviour within the sector.