Australia news LIVE:Energy market suspends trading to shore up electricity grid;Fair Work Commission raises minimum wage by 5.2 per cent;RBA predicts 7 per cent inflation by end of 2022

That’s all for today. Thanks for reading our live news coverage. Here’s a quick recap of the main headlines:

Have a good evening,and we’ll be back in the morning.

The ASX 200 had a quieter day on Wednesday compared with its sharp correction on Tuesday but stilldropped by 1.3 per cent to finish at 6601 – its lowest close since December 2020.

All sectors fell,with tech stocks dropping by 3.1 per cent,the energy sector down 2.4 per cent and real estate stocks slumping by 2.9 per cent.

Expected interest rate hikes in the US on Thursday morning (AEST) are worrying the market,with the Fair Work Commission’s 5.2 per cent increase in the minimum wage also adding to inflationary fears.

The AEMO’s suspension of the national electricity market in the afternoon also added to the downward mood of the index,wiping out a small recovery to the falls experienced as the market opened.

Read more here.

Australian Council of Trade Unions secretary Sally McManus says the union movement had to fight through “heavy crosswinds” to secure theminimum wage increase announced today.

During a press conference a short while ago,McManus said the rise,which equates to about $40 extra a week,would make a difference to struggling low-paid workers.

“While it’s not exactly what we wanted,we welcome this increase because we know that it’s actually going to make a big,big difference to 25 per cent of the workforce,” she said.

“We are talking about millions of people and their families that will have a better chance of being able to afford the groceries,their rent,their petrol and their energy bills.

“If you’re on the absolute minimum,all of your wage is spent on the basics … so that amount per week is going to mean that people will actually be able to buy the food they need for their families as opposed to having to cut back.”

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McManus also rebuffed comments from employers that the wage increase would set them back,saying that profits for most businesses were up by 20 per cent. Productivity was also high,while unemployment had plummeted,she added.

University student Jordan,who works in a fast food outlet to pay the bills,said the increase was a big relief that would help him pay for groceries.

“It means that I’m going to be able to confidently work knowing that I’m going to have the bare minimum covered and that hasn’t always been the case,” he said.

“Every week pretty much is a struggle. You don’t know what you’re going to be able to afford and what you’re going to have to cut week to week.”

NSW Treasurer and Energy Minister Matt Kean blamed the state's faulty “ageing infrastructure” for the energy crisis that resulted in the national market operator's unprecedented decision to suspend electricity trading today for the entire east coast.

Kean asked residents to minimise non-critical electricity usage tonight if they can safely do so,including “perhaps not using the dishwasher until you go to bed”.

“At the moment there's tight supply conditions between 5.30 tonight and 8.30[pm],” he said,noting the cold weather had increased demand for power.

“This is a result of a number of our coal-fired power stations not working when we need them to.

“The number of the generators that were expected to be working tonight have not come on. This has changed the amount of supply that's going into the system.

“It shows exactly why we need a plan to modernise our electricity system but in the meantime,we need to make sure that our coal-fired power stations are working when we need them to.”

Kean said Vivid,the famous light show in Sydney,would still proceed tonight.

NSW Treasurer and Energy Minister Matt Kean will address the media at 5.15pm AEST following AEMO's decision to suspend the electricity market on the east coast. Watch below:

The Australian Electoral Commission has denied former NSW Liberal minister Andrew Constance’s request for a recount in the federal seat of Gilmore.

Labor incumbent Fiona Phillips retained the seat with a margin of 373 votes.

AEC spokesman Evan Ekin-Smyth said the request was considered carefully but a recount would not be directed.

“The counting process was undertaken in line with the Electoral Act and there was sufficient checking and re-checking of ballot papers during the scrutiny period (including the fresh scrutiny process),he said.

The result in Gilmore was scheduled to be formally declared today. A new time for the declaration is expected to be announced shortly.

Phillips tweeted her thanks for people’s “ongoing and kind support” during the process.

Prime Minister Anthony Albanese joked during the caucus meeting the other week he would call Phillips “77” after her victory in Gilmore gave his government 77 seats,a majority on the floor of parliament.

Constance could still challenge the result in the Court of Disputed Returns if he wanted.

Brisbane Airport Corporation has urged the state government to remove the requirement for people within its terminals to wear masks,following new advice from the federal government’s key health advisory body.

On Tuesday,the Australian Health Protection Principal Committee reviewed restrictions and determined there was no longer a need for masks to be mandated in airports.

Masks would continue to be required on flights.

“The AHPPC notes that all states and territories have relaxed mask mandates in most settings within the community and considers that it is no longer proportionate to mandate mask use in airport terminals,” it advised on Tuesday.

Click here to read the story.

AEMO chief Daniel Westerman urged people in NSW to use less energy tonight if they can safely do so.

“We're concerned about the supply and demand balance for this evening,and potentially tomorrow,and we would urge consumers in NSW only to conserve energy where it's safe to do so.”

Westerman says there are a range of factors behind the “very challenging times”,including planned and unplanned outages of generators,very high demand because of the cold weather,and increased input costs.

“What we are creating today is a secure electricity system where we are able to manage supply and demand in real-time and have visibility on any gaps in between supply and demand,for the foreseeable future,” he said.

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“That is the best way for Australian homes and businesses to be sure that the lights will go on when they flick the switch.

“It's not true to say that prices will go up under a whole under this market suspension mechanism.”

Asked whether the situation could have been avoided if the $300 cap on prices was higher,Westerman says the confluence of factors that led to the crisis will be examined “in the days ahead”.

He said AEMO was in contact with ministers across the affected states about how it was managing the situation.

Daniel Westerman,AEMO’s chief executive,says the suspension of the electricity market is a temporary measure that will be reviewed daily.

He says the move gives the regulator “true visibility” over which generators are available and when.

“We will return the market to its normal state once AEMO is confident that we can operate the market again and not see generators withdraw their availability,” Westerman says.

Asked whether that would be days or weeks,he says the situation will be reviewed on a daily basis.

Westerman confirms this is the first time the market has been suspended nationally. It has been done on a statewide basis previously in South Australia and Tasmania.

He said that before taking the drastic step,the regulator had issued directions relating to electricity generation equivalent to about 20 per cent of demand.

“It is simply not possible to operate the market in this way,” he says.

The Australian Energy Market Operator will hold a press conference at 4pm AEST after its extraordinary decision to suspend trading on the east coast energy market. Watch below: