Stanwell's Energy Trading division bids our available generating capacity into the National Electricity Market (NEM), a wholesale market for the supply and purchase of electricity managed by the Australian Energy Market Operator
Within the NEM, electricity generators compete for the right to generate electricity into a central pool by submitting competitive price bids to supply nominated quantities of generation in certain timeslots throughout the day. We sell the electricity from our power stations into this market pool and are paid according to the spot price or existing hedge contracts with customers.
We also undertake financial transactions in the electricity derivative market to manage our price risk exposure within the NEM. These transactions are undertaken with counterparties, which include electricity retailers, banks and other wholesale energy companies.
From time to time, our operating sites are brought offline to undergo important maintenance works. These planned outages ensure a high level of availability and, in turn, a reliable supply of electricity to the national electricity grid.