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.

 

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that the Final Report for the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory (Inquiry) will not be published until March 2018.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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25 Oct QLD Premier provides ultimatum to QLD Retailers

QLD energy retailers have been requested by the QLD Premier to pass on lower electricity prices to customers or face public shaming and increased competition through a new government owned retailer. The lower electricity prices are driven by the QLD Governments intervention in the market which consists of ordering Stanwell Corporation (state owned) to lower wholesale prices, the $770 million subsidy for non-solar households for QLD Solar Bonus Scheme and the recommissioning of the Swanbank E Gas power station. Premier Palaszczuk promised to name and shame retailers who did not commit to the pledge by this Friday. Moving forward, Ms Palaszczuk confirmed that her government and the QLD Competition Authority would...

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17 Oct Clean Energy Target dismissed by Federal Government

The Federal Government has released its Powering Forward Plan which seeks to reduce electricity prices while still delivering reliable energy and meeting Australia’s international commitments on carbon reduction. The plan is wide ranging and includes direct subsidies to vulnerable households as well as improved transparency in the gas market. The Plan will look at putting obligations on the retailers to secure a minimum amount of synchronous generation. It was also confirmed that the Government would not be implementing the Clean Energy Target proposed by Finkel, however will obligate retailers to purchase an amount of low-emissions generation. The targets have not been set at this stage. It was also reported that renewable generators...

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09 Oct Energy Minister Josh Freydenburg commits to a response on the Clean Energy Target before the end of the year

The Australian Financial Review National Energy Summit kicked off in Sydney this morning. Within the first hour of the summit beginning, Federal Environment and Energy Minister Josh Freydenburg has committed to respond to the Clean Energy Target (CET) recommended in the Finkel Review. This is the only outstanding recommendation from the Finkel review that has not been accepted by the Turnbull Government. Edge are at the AFR’s energy summit and will continue to provide updates over the next two days....

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