April 2019

15 Apr Queensland spot prices – March vs April to date

In Queensland, we have observed lower daytime spot prices since the beginning of April, relative to March averages. Taking a closer look at half hourly average spot prices seen so far in April, we can see that between 8am and 4pm spot prices have been softer than the same periods in March. Following this, spot prices are higher in the evening peak periods. Whilst it is a very small data set, this is the relationship that many in the market expect to evolve. Softer spot prices in the day will motivate generators to price more aggressively (price higher) in the evening peak to increase earnings which have been lost during the day. Should...

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09 Apr Supporting Angel Flight Australia

What is Angel Flight Australia? Established in April 2003, Angel Flight Australia is a charity that coordinates non-emergency flights to assist country people to access specialist medical treatment that would otherwise be unavailable to them because of vast distance and high travel costs. All flights are free and assist passengers travelling to or from medical facilities almost anywhere in Australia. Who do they help? Anyone who is medically and financially disadvantaged, being families who have been financially devastated by medical bills due to illness, accidents or other chronic conditions. How does Edge support Angel Flight Australia? For nearly two decades, Alex Driscoll, Manager Wholesale Clients and Markets, has been involved in 4WD adventures to show other participants...

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09 Apr STAFF PROFILE – Alex Driscoll

What is the best piece of advice you have ever received? Your title isn’t only what you put on your business card; it is what you do with your position that counts. Name a place you have never been to and would like to visit. Why? Everest. It’s the highest place on earth so would be an amazing achievement to stand on the top. Who or what inspires you? Self-made successful people inspire me, being the likes of Richard Branson, Sid Kidman and Ranulph Fiennes. These people generally take risks to challenge themselves or create any opportunities. What is one of the biggest challenges facing energy customers today? The energy market is constantly changing with new technologies,...

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09 Apr STATE OF THE ELECTRICITY MARKET – SUMMER MARKET OVERVIEW

The electricity spot prices were higher for the Summer period (January - March) compared to the preceding three months. Although demand remained static, prices increased as a result of coal and gas generation setting prices at elevated levels. Average prices increased in all regions from the previous summer, with Queensland increasing the least at 23% and Victoria increasing the most at 62%. Across all regions, prices during the 2019 summer were higher than the 2018 summer and were very high in a historical context for Victoria, South Australia and Tasmania. Looking back across the last 10 summers, 2019 summer prices are at their highest levels in most states. Figure 1: Historical prices...

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09 Apr Accessing the STTM: Alternative gas supply

For a growing number of large energy consumers, consideration is turning to whether entering standard vanilla retail gas agreements deliver the most effective outcome. For consumers who are located within the bounds of the Sydney, Brisbane or Adelaide Short Term Trading Market (STTM) markets, many may not be aware that there is an alternative way to purchase gas. Below, we consider how the STTM works and what the benefits are of exploring this option.   What is the STTM The STTM is essentially a market for the trading of natural gas at a wholesale level at defined hubs between pipelines and distribution systems. The STTM is a day-ahead gas market operated by the...

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09 Apr Gas Market Update

Capacity Trading As of 1 March, the new Capacity Trading Platform (CTP) and Day Ahead Auction (DAA) came online. This market arose after the Council of Australian Governments (COAG) Energy Council agreed to implement the legal and regulatory framework required to give effect to the capacity trading reform package, as recommended by the Australian Energy Market Commission (AEMC) as part of its Easter Australian Wholesale Gas Market and Pipelines Framework Review. The reforms apply to the operators of transmission pipelines and compression facilities operating under the contract carriage model (collectively referred to as “transportation services”). The objective of the reforms is to encourage and facilitate trading of unutilised capacity on non-exempt transportation...

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