Published 15 May 2026. 72 auction results across 6 interconnector-direction pairs.
The 2025 Q3 Inter-Regional Settlement Residue (IRSR) auction round recorded 72 auction results across six interconnector directions, spanning contract quarters from 2025 Q4 through to 2028 Q3. The most notable price movements this quarter were on the Heywood interconnector, where clearing prices fell sharply in both directions — down 15.2% in the VIC1 direction and 9.5% in the SA1 direction — suggesting the market has moderated its expectations of persistent Victoria–South Australia price spreads relative to the prior quarter. By contrast, the QNI corridor continued to attract strong and rising clearing prices, particularly in the QLD1 direction, which averaged $26,808.22 per unit, the highest average across all interconnector directions this quarter.
Across the six interconnector directions, sell-through rates ranged from 69% to 87%, indicating broadly healthy demand for settlement residue hedges but with some differentiation by corridor. The VIC–NSW (VIC1) and Heywood (VIC1) directions recorded the lowest sell-through rates at 70% and 69% respectively, consistent with their declining clearing prices and pointing to reduced market appetite for hedging in those directions.
Clearing prices averaged $9,240.48 per unit, up 5.9% from the prior quarter average of $8,724.13, with prices ranging from $3,822.00 to $21,800.90. The 82% sell-through rate — 686 of 835 units sold — was among the stronger results this quarter. The rising clearing prices and solid sell-through suggest the market continues to price in meaningful northward flow constraints and expects NSW spot prices to remain at a discount to Queensland across the forward curve.
At an average of $26,808.22 per unit, the QLD1 direction remained the most expensive interconnector direction auctioned this quarter, up 3.6% from $25,873.59 in the prior quarter. The range of $20,000.00 to $34,345.40 indicates consistent and elevated demand across tranches, with 1,256 of 1,659 units sold (76% sell-through). These clearing levels reflect sustained market expectations of Queensland prices sitting materially above NSW, a dynamic relevant to participants with exposure to cross-border generation or load positions.
Clearing prices averaged $12,328.34 per unit, a significant decline of 15.2% from the prior quarter average of $14,534.94, with a range of $7,750.88 to $19,564.88. Sell-through was 69% (905 of 1,316 units), the lowest of any direction this quarter. The combination of falling prices and weaker sell-through is the clearest signal in this report that the market has revised down its expectations of Victoria-to-South Australia price spreads over the forward horizon.
The SA1 direction averaged $4,303.95 per unit, down 9.5% from $4,757.54 in the prior quarter, with prices ranging narrowly from $3,709.80 to $5,560.00. Sell-through was 80% (791 of 989 units), indicating reasonably firm demand despite the price decline. The comparatively tight price range suggests the market holds a more consistent view of South Australia-to-Victoria spread risk across contract quarters than is the case in the opposite direction.
Clearing prices averaged $14,711.22 per unit, down 8.2% from the prior quarter average of $16,029.21, with a range of $11,910.60 to $19,261.39. Sell-through of 70% (1,513 of 2,168 units) was the second lowest this quarter. Alongside the Heywood VIC1 direction, this result points to easing market expectations of Victoria's price sitting below New South Wales — a notable shift that may reflect updated views on generation mix and transmission availability on this corridor.
The NSW1 direction averaged $3,634.75 per unit, up a modest 1.6% from $3,578.27 in the prior quarter, with a wide range of $1,712.70 to $6,502.00. At 87%, this direction recorded the highest sell-through rate of the quarter (1,314 of 1,516 units), suggesting strong and consistent demand for this hedge across tranches. The low absolute clearing price relative
Data source: AEMO SRA Results (NEMWEB). Ingested weekly by gridIQ. Analysis generated by Watt AI (claude-sonnet-4-6). gridIQ does not participate in IRSR auctions and this report does not constitute financial advice.