Edge News

 

Our team is dedicated to being across the energy industry. We analyse any changes within the market and evaluate the impact to our clients. Here you will find a range of articles ranging from major industry events through to our detailed views on energy market movements.

 

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 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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02 Nov Alinta reported to be likely buyer of Loy Yang B

The Australian Financial Review has reported Alinta as the preferred bidder for the Victorian brown coal station Loy Yang B, offering in the range of $1 to $1.3 b for the power station which accounts for roughly 20% of coal capacity in Victoria.  There is another interested party, China Resources which are believed to have made a higher bid, however would require approval from its Chinese parent company as well as Australia’s Foreign Investment Review Board (FIRB). Alinta already has FIRB approval. Current owner ENGIE is expected to make a decision regarding the sale a next weeks board meeting in Paris. It is conceivable that more contracts will be made available in Victoria...

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30 Oct Have you appointed your Metering Coordinator?

The implementation of the new arrangements resulting from the Power of Choice Review undertaken by the Australian Energy Market Commission’s (AEMC), will take effect on 1 December 2017.  The new arrangements include the introduction of the Metering Coordinator, along with changes to the National Electricity Rules (NER).The implementation of the new arrangements resulting from the Power of Choice Review undertaken by the Australian Energy Market Commission’s (AEMC), will take effect on 1 December 2017.  The new arrangements include the introduction of the Metering Coordinator, along with changes to the National Electricity Rules (NER). Key features of the final rule include: 1. A shift in who has overall responsibility for metering services under...

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30 Oct Potential delay in reaching agreement on National Energy Guarantee

The Queensland Premier officially called an early election to be held 25 November 2017. This means that the planned November COAG Energy Council meeting is unlikely to be able to agree on the National Energy Guarantee (NEG) as it requires all states and territories in the National Electricity Market to agree. The Federal Minister for the Environment and Energy, Josh Frydenberg, is still pushing ahead with modelling the scheme which the Energy Security Board will deliver to the Minister 13 November 2017. It is not known how soon after the election a government could be formed in Queensland, however with Sportsbet tipping the Liberals to take over in a close race,...

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26 Oct Ergon Retail offer ‘EasyPay Rewards’ to help alleviate rising costs in energy

On Tuesday 24 October, Queensland Treasurer Curtis Pitt and Energy Minister Mark Baily announced a new suite of measures to create electricity savings for Queenslanders under the Palaszczuk Government’s Affordable Energy Plan. One of the initiatives announced will be the removal of Ergon’s non-reversion policy.  The non-reversion policy prevented customers who transferred away from Ergon Retail from returning.  The Government believes that removing this policy will give customers in regional Queensland more choice when selecting a retailer.  Not only will regional customers be able to shop around, but they will now have the ability to test the water and return to Ergon Retail should they wish to do so.  Coupled with...

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