November 2017

28 Nov AEMC release their final determination on five minute settlement

The Australian Energy Market Commission (AEMC) has released its final determination into the five minute settlement rule proposal. The AEMC decided to change the draft rule however most of the changes it made were fairly minimal. The substantial change, that generators would be paid on a five minute basis instead of 30 was adopted. The most material change was that all demand would be settled on the five minutes instead of 30 minutes which was originally proposed.  This means that all type 4 meters will have to be able to record five minute data. AEMC has allowed a transitional period for this change to take place. The final rule will commence 1...

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24 Nov COAG EC agrees to investigate the NEG further

The COAG Energy Council met in Hobart today.   There was an agreement to precede with further work on the National Energy Guarantee (NEG) proposed by the Energy Security Board and put forward by the Federal Government.   Only the ACT and South Australia opposed as they wanted the COAG to pursue other ways of cutting emissions.   Queensland decided not to vote, as it is in caretaker mode ahead of tomorrow’s state election.   The COAG Energy Council will meet again to discuss in April 2018 when more details on the NEG will be available. ...

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14 Nov How will the outcome of the QLD election impact the energy market?

QLD will have a state election on 25 November 2017 with one of the issues being cost of energy. Unlike other states, QLD does not have supply concerns which makes energy policy a far simpler matter relative to states like SA or VIC. The Labor Party, is committed to lowering costs as well as reducing emissions whereas the Liberal National Party is willing to forego state based emission targets and focus on reducing energy costs. Edge have pulled out the specific energy commitments made by the major parties below. ALP If Annastacia Palaszczuk is elected, she has committed to the following initiatives: Create a third publicly owned power generation company, “Clean Co”, with...

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10 Nov Energy Security Board – National Energy Guarantee Webinar

The Independent Chair of the Energy Security Board (ESB), Kerry Schott, hosted a 45 minute Webinar this morning to provide further detail on the National Energy Guarantee (NEG). There was no new information provided in the 45 minute webinar, nor was there clarification provided on key concerns that have been raised to date. The Independent Chair suggested that the NEG will be underpinned by the behaviour of retailers to seek the lowest cost blend of generation to meet their energy blend requirements (low emission and dispatchable). Whilst not voicing express concern on the potential market power of the large Gen-tailers there was a tone of apprehension, particularly for SA where...

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10 Nov Delays to Northern Territory Hydraulic Fracturing Final Report

The Northern Territory Government announced on 7th November that the Final Report for the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory (Inquiry) will not be published until March 2018.  This has been caused by delays in community consultation activities that have set back the release of the draft Final Report to mid-December. The Federal Government continues to put pressure on the States to lift their moratoriums on fracking, and this may very well be a set-back to the Government’s plan to free up more gas for the domestic market in the short to medium term.  The delay in releasing this report will make it virtually impossible for any significant...

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09 Nov Help Sick Kids Today!

The Children’s Hospital Foundation helps sick kids today and tomorrow by funding life-saving medical research, investing in vital new equipment, and providing comfort, entertainment, support and care for children and their families. To support this great charity, Edge will be attending The Coffee Club Telethon Ball for the 2nd year running on the 18th of this month. Unfortunately this event sold out quickly, however there’s a lot you can do to support a child with an injury, serious illness or life threatening disease. You can donate money to help save precious young lives. Donate your time to make a difference at our children’s hospital. Or raise funds for vital research and equipment,...

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09 Nov EDGE LIVE – Introducing interactive ‘Dashboards’

We’re all about providing a tailored and specialised service to our clients. But we also know you often need quick access to information regarding your energy consumption and spend. This is why we’ve developed Edge Live. Edge Live is a secure, online information portal that gives you instant access to contracts, portfolio information, reports, data and so much more. The portal provides you with instant access to the information you need to make informed choices for your business. Our latest enhancements to the Edge Live software is our interactive Dashboard module. Interactive Dashboards Edge Dashboard provides you with an interactive graphical portal that allows you to view your consumption and energy costs across a...

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09 Nov STATE OF THE MARKET – Q417 MARKET OVERVIEW

The electricity market is in a state of confusion as a result of poor Federal and State Government policy. The Market Operator, AEMO, released the Electricity Statement of Opportunities during September. The Statement warned of supply shortfalls during the first three months of 2018 and a heightened risk of unserved energy over the next 10 years. On 17 October the Federal Government announced the National Energy Guarantee (NEG). The Guarantee is the model that will see energy being delivered to consumers reliably and affordably whilst also meeting our international emission commitments. The NEG is an alternative to the Clean Energy Target introduced by Dr Alan Finkel in his Finkel Review. Since...

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09 Nov Gas Supply Remains in Focus

Market News The Australian Energy Market Operator (AEMO) released its updated Gas Statement of Opportunities during September. The report indicates that in eastern and south-eastern Australia, there is potential for an annual energy shortfall in the domestic gas market of 54 petajoules (PJ) in 2018 and 48 PJ in 2018. AEMO warned that the shortfall could be higher in a variety of plausible circumstances that could increase demand for gas by household and business consumers, and for gas-powered generation of electricity (GPG) in the National Electricity Market (NEM). AEMO’s estimates that the shortfall could be as high as 107 PJ in 2018 and 102 PJ in 2019. This forecast was quickly...

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09 Nov Internal Risk Guidelines – Time for a check-up?

How does your business procure its electricity? More importantly how does your business manage electricity price risk? Do you secure a long-term agreement only to file it away not to be seen for several years? If this is the case, then it’s time for a check-up because you may be placing your business at risk. If your business is situated on the east coast of Australia it’s connected to the National Electricity Market (NEM). This market operates every second of the day, 7 days per week, 365 days per year. It’s the platform that connects electricity producers and consumers. The NEM enables electricity to be treated as a commodity and consumers can...

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