Mental Awareness Foundation

Finding a charity to donate to can be a tough exercise considering the fantastic work that hundreds of charities do daily. This month Edge would like to shine a light on mental health.

Through out October, there were many amazing initiatives taking place such as the Instagram challenge where you used the hashtag #QMHWTakeTime to show how a Queenslander takes time for their mental wellbeing or ‘Light up Brisbane’ where many landmarks around Brisbane lit up in bright purple on World Mental Health Day. All this is to raise awareness of the value of positive mental health and wellbeing. Kate, our Senior Portfolioi Manager also got involved by being part of the walk for awareness helping to break the silence on mental illness and support the Mental Awareness Foundation.

What is the Mental Awareness Foundation?

1 in 5 Australians are affected by mental health but many do not seek help or openly talk about it due to surrounding stigma and prejudice. According to the World Health Organisation, in 2016 alone 2,866 people died from suicide in Australia. This is an average of 8 Australians a day with men being 3 times more likely to take their lives than women. The walk for awareness, organised by the Mental Awareness Foundation is 8KM, each kilometre representing one of those Australians who take their life each day.

The Mental Awareness Foundation tries to break the stigma around mental illness and encourages open conversations around suicide and depression. They want to shine a different light on those struggling with depression and strongly advocate for the rights, acceptance and recognition of people dealing with mental illnesses.

The charity was founded due to the founder losing 2 close friends to suicide within 3 months of each other. He wanted to prevent this from re-occurring and make a difference to individuals struggling with this illness. His ambition is to create a safe space where he can bring people together to talk about mental health openly and raise awareness of depression and mental illness.

The 2019 walk raised $141,893 had 862 fundraisers and 2,548 donors.

Edge encourages you to consider those around you be aware of those that may be struggling with mental health. To donate or to learn more about the Mental Health Foundation, please follow the link – https://donate.everydayhero.com/d/j5YsA1_PWwKecvUsfPfg9w/amount. For those that have donated to this great cause, we thank you.

Edge makes submission regarding NEG

It is important that the National Electricity Market remains secure and Australia can be part of the international commitment to reducing climate change while remaining competitive.

The NEG seeks to achieve these objectives while trying to achieve support from both major federal parties. The importance of bipartisan support has been acknowledged, as the market struggles to self-adapt with uncertainty. Having a lasting framework which is flexible enough to allow for changes in a rapidly changing energy market whilst providing certainty to investors who need to recoup long term fixed charges is difficult. Ensuring the market remains efficient and effective is critical to achieving the objectives. It is in this context that Edge provides this initial Submission.

If you would like to learn more about the National Energy Guarantee or have any questions or concerns regarding our submission, please contact Edge on (07) 3905 9220 or 1800 334 336.

[pdf-embedder url=”https://edge2020.com.au/wp-content/uploads/2018/03/Edge-Energy-Services_ESB-NEG-Response_180308.pdf” title=”Edge Energy Services_ESB NEG Response”]

RSPCA ADOPT A PET!

For the 50,342 animals that arrived at the RSPCA Queensland centre over the past year, it was a second chance at life. One of those lives belonged to 3 year old ‘Roger’, a domestic short hair ginger tabby cat. Roger had been surrendered by a family that no longer wanted him and after spending 4 months in the Wacol RSPCA shelter, was re homed. Roger was given another chance of life after being adopted by Kristy McGrath, our Head of Operations & Client Delivery, at the recent RSPCA Pop Up Adoption Day in South Brisbane. Already having two dogs and two horses, adopting Roger from the RSPCA was an easy decision when it came to adding to her animal family.

Edge has always been a big supporter of the animal community and charity foundations. And whilst choosing the right pet is fun and exciting, it takes time, planning and lots of research. To make the process easier, the RSPCA has introduced Adopt a Pet, a national website that lets you view some of the animals waiting to be adopted at RSPCA locations across Australia.

Join Edge in giving these animals another chance of life. Visit their website, and give a dog, puppy, cat or kitten a second chance to find their loving home!

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 2^nd year running on the 18^th 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, spread smiles and support families through difficult times.

You can make a difference to sick kids and their families today and tomorrow. To find out more visit the Children’s Hospital Foundation site at www.childrens.org.au and be sure to tune into Channel 9, Saturday 19 November for the annual Telethon.

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 followed by the Federal Government requesting major LNG producers to bridge the supply gap or face the implementation of the Australian Domestic Gas Security Mechanism (ADGSM). The LNG producers agreed to the Prime Minister’s request to make gas available. Had they not, the Federal Government has the power to implement the ADGSM which is a mechanism designed to restrict gas exports to increase domestic supply.

The Sole Gas Project is a new source of gas for the south east. The project is estimated to bring an additional 25 PJs of supply to the market each year, of which some is already contracted. This is the first offshore project in VIC to be sanctioned in almost a decade.

Still on the topic of increasing supply of gas to the east coast, the Northern Gas Pipeline is being promoted by owners Jemena, as being operational from the end of 2018. This is despite delays caused by negotiations with traditional owners of land and issues with the construction partner. Once the pipeline is complete it will have capacity to transport 90 TJs per day from Tennant Creek to Mt Isa. The challenge will be delivering gas to the east coast at a competitive price and achieving a level of increased supply that is sufficient to impact prices.

Following the NT Governments announcement of a moratorium on hydraulic fracturing of onshore unconventional reservoirs and the initiation of an Independent Scientific inquiry into Hydraulic Fracturing of onshore unconventional reservoirs, an interim report was released during July. The report provided some high-level conclusions regarding the environmental, social, cultural and economic risks associated with hydraulic fracturing for shale gas in the NT. The final report is due March 2018 and will be critical in guiding the NT government on whether to lift the moratorium. During September the Federal Government pressured the NT government into lifting the moratorium in the interest of making more gas available for domestic consumption.

Difference between Conventional and Unconventional gas…

Unconventional gas rests in relatively impermeable rock. The low porosity of the rocks is why, as opposed to conventional gas, ‘artificial stimulation’ is required. Artificial stimulation is where fracturing or “fracking” is required to disrupt the rock and release the gas. Unconventional gas includes Coal Seam Gas (CSG), shale gas and tight gas.

Conventional gas has moved from its original source rocks and is now resting in more permeable rocks and has then been trapped under a seal of impermeable rocks. Collection of conventional gas is easier as the gas accumulates in confined spaces and therefore allows for strategically placed wells to take advantage of areas of accumulated gas.

Gas Prices

Wholesale gas prices were lower for Adelaide and Brisbane and higher for Sydney and Melbourne relative to the same period last year. Unlike last year there were no significant price spikes in Adelaide or Melbourne.

	Adelaide price ($/GJ)	Brisbane price ($/GJ)	Sydney price ($/GJ)	Melbourne price ($/GJ)
Q316	$9.27	$7.13	$7.53	$8.48
Q317	$ 8.11	$6.71	$8.94	$8.72

During September there was an increase in average temperatures which lowered demand for domestic heating gas and consequently there was some softening of wholesale prices late in the month.

C&I customers are generally facing increased prices as they come off old contracts. Prices quoted by gas suppliers have a relatively wide range and are subject to swings in consumption and tenure of agreement. The higher contract prices have prompted consumers to ask questions about alternative supply options and there has been an increase in interest into participation in capital city trading hubs.

Gas supply is a key feature of the recently announced National Energy Guarantee (NEG). Gas plays a key role in any emissions reduction policy due to its relatively low emissions and responsive nature of gas fired power stations. Within the NEG there is $90 million allocated to securing medium term supply. The funds will go towards the following initiatives:

Geological and Bioregional Assessments program to examine new gas reserves and support increased domestic supply by assessing the environmental safety of unconventional gas;
Development of new onshore gas in the NT and east coast;
Accelerate the work of the Gas Market Reform group to improve access and transparency;
Assessment of benefits in construction of new gas pipelines in the north and west of Australia to the south east via Moomba in SA; and
Examination of constraints on increasing gas supply on the east coast such as regulatory barriers and inconsistent policy.

If you would like to know more about what is happening in the gas market and how your business may be affected, please call Edge on 07 3232 1115 or contact your Edge Portfolio Manager.

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 enter into forward contracts to manage their commodity risk in the same way other commodities are managed.

If you haven’t reviewed your electricity risk guidelines in recent years, it is likely you contracted with a retailer for a 2-3 year period. By entering into a long-term rate agreement you are foregoing opportunities to secure potentially lower electricity prices if there is a decline in prices.

In the current energy market it’s important to take a proactive approach to securing your electricity rates. This can help mitigate the risks of price increases and capitalise on price decreases. This approach enables consumers to secure electricity rates on a quarterly and region basis and is often referred to as progressive purchasing.
The volume of electricity that your business uses is a significant consideration when determining your appropriate risk tolerances. The more electricity your business uses, the greater the financial risk.

If you are unsure about how to approach your electricity procurement or are interested in understanding more about risks associated with electricity purchasing, please contact us on 07 3232 1115 to speak with one of our Portfolio Managers.

STAFF PROFILE – Melissa Lascelles

With extensive industry knowledge and experience, Melissa brings insight and clarity to her role as a Portfolio Manager. Her experience as both a retail client and a portfolio manager in the energy industry means she can be innovative and responsive in delivering optimal solutions for our clients. With a focus on client relationships, Melissa believes that collaboration helps to bring the best possible energy portfolio outcomes.

What is the best piece of advice you have ever received?

Don’t sweat the small stuff. I continue to remind myself of this on a regular basis.

Name a place you have never been to and would like to visit. Why?

Sabah. A remote non-western location with gorgeous beaches, the ability to switch off and spend quality time with my family without technology.

Who or What inspires you?

Those that know me understand my strong interest in fashion. I aim to live by one of Coco Chanel’s infamous quotes:

‘Dress shabbily and they remember the dress; dress impeccably and they remember the woman’

What is one of the biggest challenges facing energy customers today?

Affordability.

For large industrial and commercial customers, the early conversation with Senior Management to prepare for price shocks in the current market. I recommend that you understand the business drivers – are you managing to a budget or is the aim to reduce costs? This will assist with establishing a suitable framework to improve the communication and management of electricity costs.

For residential customers, affordability is a continual conversation in households today. Perish the thought of candles being utilised because of the cost of electricity in a OECD country.

What does a typical day look like for you at Edge?

Everyday I speak with our Markets Advisory team to discuss any major events in the energy market and the potential impacts to my customers. We then brainstorm any suitable actions such as client recommendations, forward contracting and negotiations with retailers.

I spend a lot of my time communicating with customers and managing their energy portfolio. I provide them with detailed reporting such as budgets, accruals and invoice reconciliation reports and assist them with cost savings initiatives that are suitable for presentation to their business.

Energy deals cut costs

Edge Energy Services (Edge) provides expert advice to large energy consumers. Good advice starts with understanding the customers energy constraints, requirements and motivations. This means any identifying seasonal or daily trends in demand as well as risk appetite and any green commitments. Once Edge understands the critical information we will facilitate a tailored agreement with an energy provider. For more complex energy portfolio’s, customers may benefit from on-going management services particularly when progressively purchasing or taking spot exposure.

Over the past 18 months wholesale energy prices have increased. This has forced consumers to think more laterally about their energy costs. Most energy providers will base their pricing offers on the forward curve that day. If the customer wants to reduce exposure to the forward curve one option is to enter into an agreement directly with a generator through a Power Purchase Agreement (PPA). These agreements commit the customer to purchasing the offtake from a generator at a set price for a defined term, usually a minimum of 10 years. As technology continues to improve the cost of generating electricity declines and PPA’s become increasingly appealing. You can read more about what Edge is doing in this space in todays Australian Financial Review.

High Resolution PDF – Energy Deals Cut Costs

Edge understands that your business may be at early stages when it comes your energy strategy. If you are in a planning stage and would like to understand your options Edge will be able to provide you the facts. If your organisation has a green energy commitment then Edge can tailor a product to suit your energy demand and corporate commitments. Alternatively you may benefit from onsite generation which can reduce both energy and transmission cost.

Whatever stage your organisation is at, there is potential value to be gained by entering into alternative supply agreements or taking a more sophisticated approach to managing your energy portfolio. Edge can help If you would like to learn more about Edge, please visit edge2020.com.au or alternatively you can call one of our team directly on 07 3232 1115.

Edge Insights – Issue 4

Edge Insights provides you with the latest news in the energy industry and showcases some of our services that help to ensure businesses maintain their optimal energy arrangements at all times. In this edition:

Renewable projects to meet your energy needs
State of the Market Q217
Staff Profile: James Webster
Government steps in to reduce gas prices
Energy Cost Forecasts
Raising funds for Kids’ bus

Renewable Projects Deliver Value

Interest in renewable generation projects has escalated on the back of elevated black and LGC prices and declining renewable offtake costs. The fulfilment of these projects presents an opportunity to change the energy supply landscape in Australia. However, will government intervention and continued downward pressure on wholesale electricity prices derail the renewable movement?

Edge has worked with several renewable generation projects on development and funding applications, offtake arrangements, and firming products. Whilst ensuring that security of supply and integrity of the network is paramount, we view the progress of renewable projects as a positive step for the market and consumers.

As an advisor to large Commercial & Industrial (C&I) consumers, we give careful consideration to the integration of renewable generation projects when developing procurement strategies. The advantages for both seller (generator) and buyer (C&I offtaker) make transactions of this nature mutually sought after and beneficial.

In recent years, we’ve seen the cost of black energy and Large Scale Environmental Certificates (LGCs) reach all-time highs and the cost of renewable generation become increasingly competitive.

Renewable generation projects and large C&I off-takers have never been more compatible.

Our client base is dominated by large and sophisticated energy users who value proactive risk management and understand the need for diversification strategies within their portfolio. A diverse strategy may include blending spot exposure with shorter term proactive and responsive dynamic hedging strategies, and longer term aggressively priced off-take deals. These users don’t shy away from longer term propositions.
They understand the importance of diversifying to protect against volatility and uncertainty.

A market where forward prices trade in a $5/MWh annual range with $0.20/MWh intra-day spreads are a thing of the past. Over $40/ MWh annual ranges with $5 to $10/MWh intraday spreads are the new reality. These are alarming figures.

Spot prices are fundamentally higher, and we are seeing sporadic volatility that decimates quarterly averages. Market risk has escalated to levels that demand users take a more diversified and committed approach to setting prices that significantly decrease their exposure to market volatility.

There is a frightening portion of aging baseload generation in the NEM.

The current intervention by various government and jurisdictional bodies has stalled the increase in energy prices, but provides no certain longterm solution. Short-term relief will only act to delay planned projects and push prices even higher. The cycle of high prices followed by temporary relief due to intervention continues.

We are helping clients beat the cycle by taking control of energy costs. We play a pivotal role in matching credible projects with suitable consumers, and give careful and considered support
to generation projects through longer term off-take agreements. We integrate these with complementary risk management products and an overall energy procurement strategy that mitigates risks and reduces costs. The benefits are two-fold. Continued investment in renewable generation and competitively priced electricity portfolios that save you money.

STATE OF THE MARKET

Q217 MARKET OVERVIEW

The Federal Government’s electricity announcements continued to dominate news in the second quarter of 2017. With power prices increasing and reliability questioned following
the black-out event in South Australia (SA) in March, all levels of government were keen to produce policy to assist the market.

The Federal Government delivered their Energy For The Future package as part of their budget which would look at new gas development and greater gas interconnection across Australia.

It also had additional funding for the Australian Competition and Consumer Commission (ACCC) and Australian Energy Regulator (AER) to conduct reviews into the market. An independent review into the future security of the national electricity market was released late in the quarter. The Finkel Review made a number of recommendations for energy security and the Federal Government has proposed to adopt 49 out of 50 of these. This includes setting up a new Energy Security Board which will be responsible for whole-ofsystem oversight for energy security and reliability. The most controversial aspect of the review was the suggestion that a Clean Energy Target be adopted if an Emissions Intensity Scheme could not be agreed.

The Federal Government also announced they would restrict gas export if there was insufficient gas for domestic consumers. If a gas producer is sending more gas overseas than it is developing it must explain how it will fill any domestic shortfalls or they can be ordered to limit their export under
existing legislation. This quarter saw the SA Government progress their plan to avoid future black outs. Their first step was releasing a tender for 100 MW of battery storage.

You can find their other initiatives on our website. The Queensland (QLD) Government outlined their Powering Queensland Plan in June with a focus on reducing power price increases. This will be done partly by paying the distributors $770 million to reduce network costs to customers. It also reaffirmed the QLD Government’s commitment to a 50 per cent renewable target by 2030.

A reverse auction for 400 MW of renewable energy was also included. In the near term, the plan will increase system security by returning Swanbank E (385 MW gasfired generation) to service and direct Stanwell Corporation to undertake strategies to place downward pressure on wholesale prices.

Full plan can be found here: https://www.dews.qld.gov.au/electricity/powering-queensland-plan

The market operator (AEMO) will also look to stabilise the grid for summer 2017-18. Both South Australia and Victoria are showing lack of reserves and there is no market solution apparent at this time. In response, AEMO has triggered its Reliability and Emergency Reserve Trader (RERT) functions. AEMO will seek to build a panel of service providers who can reduce their demand at times of peak demand (or provide equivalent generation).

This panel will be in place in case there are unforeseen shortfalls in the near term. For the current reserve shortfalls, AEMO is also seeking expression of interest from providers who can reduce load, benefiting the South Australian or Victorian region for summer 2017-18.

SPOT MARKET

Q2 2017 was the first quarter after the Hazelwood Power Station (1,600 MW brown coal in Victoria) shut down. This had a large impact on Victoria which had an average price of $104.92/MWh compared to $64.19/MWh for Q2 2016.

Spot prices were higher across all regions except for Tasmania. Tasmania was higher in 2016 primarily due to an average price in April of $236.85/MWh due to limited hydro output as Hydro Tasmania was rebuilding their storage levels. With the rain fall in May, Hydro Tasmania could continue to generate more power into the system, softening spot prices.

FORWARD CURVE

The forward curve for 2018 contracts increased with the higher spot prices. There was an additional increase when Hazelwood Power Station closed. The forward curve started reducing towards the end of the quarter due to lower spot prices. There was an additional drop when the QLD Government announced its new energy plan. It’s expected that lower QLD wholesale prices will flow through to other states.

Temperatures have driven higher demand across the market, however there is still sufficient generation to meet this demand. When base load generation has been lower in Victoria, Snowy Hydro provided sufficient generation to avoid the state running out of power.

STAFF PROFILE

James Webster

What is the best piece of advice you have ever received?

“Time stands still for no-one, my son.”

Name a place you have never been to and would like to visit. Why?

Iceland. Seemingly on the edge of the world (or the Arctic Circle at least) and with a raw elemental landscape that would be awe inspiring to see.

Who or What inspires you?

As a techie and science-fiction fan, the progress being made by Elon Musk’s SpaceX amazes me. The footage of rockets landing back on earth ready to be reused is a reminder we are, at least a little bit, living in the future I imagined as a young lad.

What is one of the biggest challenges facing energy customers today?

The decision of whether to invest in battery storage is an especially challenging one; whether at the residential level, or more industrialscale capacities. The technology seems tantalising close now for the mass market, but payback periods are still significant; with the chance that an investment now may be quickly superseded by more advanced technology – at a cheaper price!

What does a typical day look like for you at Edge?

Firstly, I check all overnight data feeds have loaded correctly and automated morning reports have been distributed. After that, I am constantly designing and implementing improvements to our systems to better serve our customers.

Innovation is also an important part of my role. I develop new tools and resources for our clients to give them greater insight into their portfolios.

GOVERNMENT STEPS IN TO
REDUCE GAS PRICES

GAS EXPORTS

Earlier this quarter, the Federal Government introduced their Australian Domestic Gas Security Mechanism as a means of ensuring gas security and affordable pricing. Under this legislation, it is expected the government will have the capability to order LNG exporters to limit their exports to ensure no supply shortages in the domestic market. This action is expected to put downward pressure on prices. Regulations were due to be in place by 1 July 2017, with export restrictions to commence 1 January 2018.

GAS EXPLORATION

The government is also looking to increase new gas supply reserves by removing restrictions on exploration and development in a further push for affordability. They may face difficulty due to current restrictions imposed by individual state governments.

Victoria (VIC) has a moratorium on both conventional and unconventional onshore gas exploration until at least 2020.
The Northern Territory (NT) announced a moratorium on fracking of unconventional gas resources last year. This was followed by the announcement of an independent inquiry into hydraulic fracturing of onshore unconventional reservoirs.
In 2014 New South Wales (NSW) released their Gas Plan which included a buy-back plan to purchase Petroleum Exploration Licences. Significant numbers were sold back to the government. Only one operating project remains in NSW, which is set to cease operation by 2023.

Queensland currently has no restrictions on onshore gas exploration. Their ‘Blueprint for Queensland’s LNG Industry’ didn’t include protection mechanisms for the domestic market, however they did reserve the right to set aside future gas fields for domestic supply if needed. They will release two blocks in the Surat Basin for this purpose in coming months. Gas produced from these areas will be designated for the domestic market.

GAS SPOT PRICES

Spot Prices for the month of June have been sustained by relatively mild winter temperatures. In June 2016 the three hubs – Adelaide, Sydney and Brisbane – experienced extremely high spot prices, with Sydney trading the most expensive spot gas at $29/GJ on two separate days. Fast forward to June 2017, and on the same two days, spot gas was sold around $9.35/GJ.

Contact us to find out more.

FY17/18: HOW ACCURATE IS YOUR ENERGY COST FORECAST?

The start of a new financial year presents an opportunity to evaluate and plan your next 12 months. Energy costs represent a significant portion of operational expenditure and a forecast should be carefully considered in your plans. Energy costs can be challenging to understand for several reasons;

Geographically dispersed operations
Invoices may not be stored centrally
Minimal visibility of usage and costs
Poor understanding and insight into historic and projected operational performance

Things to consider when developing your forecast:

Identify the data you need for reporting

Consider the level of detail you require when developing your energy forecast. You may need it broken down in a number of ways;

Monthly forecasts

Department/Division
Energy cost components
Fixed or variable costs

Accurate energy budgets and forecasts rely on you transforming your historical energy data into
usable future estimates.

Gather your information

Historical consumption data provides a platform for future estimates. Complex organisations will require greater insight and understanding of forecast consumption. Confirm any operational changes that may impact consumption and include this in your calculation.

Energy and environmental rates are especially important when forecasting in a period where your organisation is uncontracted. Incorporate marked to market pricing to avoid any surprises and prepare for any potential price shocks. This is imperative during times of volatility.

Network Charges can account for up to 50 per cent of an energy invoice. These costs are regulated and need to be included in your overall forecast.

Monitor progress

Once your forecast is in place, it’s important to monitor progress of actuals against forecast. Identify any significant variations and investigate.

Edge provides the flexibility to develop bespoke reporting to suit your requirements. Our reporting pack includes detailed forecasts of all energy cost components.

RAISING FUNDS FOR KIDS’ BUS

Edge has been a long-time supporter of Nursery Road State Special School and this year, they need your help too.

The school’s 25-year-old bus is due to be decommissioned soon and $100,000 needs to be raised for a replacement. They will be holding a Spring Fair to help reach their goal for this much-needed resource.

Inclusion is vital for the students at Nursery Rd. A wheelchair accessible bus enables them to attend camps, sports programs, and participate in leisure and independent living activities in the community.

You can help by sponsoring a ride or stall at the Fair, sponsor parts of their new bus, or buy amazing artwork at the Art Auction.

All sponsors will be acknowledged on the school’s Facebook page and newsletter. If you’re considering a bigger donation, ask about signage options or advertising on the bus.

The Spring Fair is being held on Sunday 10 September at the school’s All Ability Sports Oval in Holland Park West. Donations are tax deductible and can be made by direct deposit. Contact the school on 07 3308 6333 for more information.

Full PDF edition: Edge Insights – Issue 4

CEOs concerned about energy price rises

The CEO Business Prospects Survey conducted by The Australian Industry Group (AI Group) has identified a concern among CEOs about a rise in energy prices in 2017.

The annual survey received responses from 285 CEOs representing all major non-primary private-sector industries Australia-wide. The industries were grouped into mining services, manufacturing, construction, and services. Edge was particularly interested in the results as our core business is supporting clients from these industries in managing their energy costs and portfolios.

Many respondents are cautiously optimistic about business conditions in 2017 but maintain an almost neutral position when it comes to business investment and employment. There are several positive factors that contribute to this optimism including; low interest rates, low inflation, low unemployment, and a lower trading range for the Australian dollar.

Data from the survey identified several key areas CEOs were concerned about for 2017. One of these was the expectation that energy prices would negatively impact their business throughout the year. 51 per cent of CEOs expect their energy costs to rise in 2017. This is in addition to some reporting a doubling or tripling of their energy costs in 2016. These are real concerns, and ones we have seen first-hand.

It was interesting to note that businesses involved in this survey were more in favour of increasing sales or developing new products rather than managing operational costs. Although sales and product development are important, prudent management of operational costs should be an ongoing priority for businesses. Especially the costs that can be structured in a way to reduce risk and exposure to changeable markets.

Edge understands the effect energy prices can have on a business. With the benefit of extensive experience and daily immersion in the market, we have a depth of knowledge in the energy industry that can’t be matched. It has enabled us to develop procurement strategies and reporting that are focused on mitigating risk and reducing energy costs. Our clients get the benefit of years of experience when they work with us. Working closely with our clients and tailoring solutions for their energy portfolios has resulted in savings of millions of dollars for them over the last decade.

Read the full report at http://cdn.aigroup.com.au/Reports/2017/Business_prospects_Jan2017.pdf

How are energy prices affecting your business in 2017? Contact us to see how we can help.