A price spike occurs when the wholesale price climbs up to a maximum cap of ~$16.50 / kWh including GST (56 times normal prices - depending on your region). These occur for just a few hours each year, usually in January, and typically caused by demand exceeding supply. For example, there is a higher likelihood of price spikes occurring in the early evening on very hot days, because this is when everyone gets home from work and runs their air conditioners. It’s also worth noting that price spikes are less common in NSW and QLD because these regions have more dispatchable supply.
Don't forget: We guarantee you will never pay more than the Default Market Offer over a year or we’ll refund the difference.