Inflationary Impacts of Electricity Prices (30/07/10)
The EUAA has drawn attention to the inflationary and other disturbing economic impacts of the large increases in electricity prices occurring over the past year or so. These impacts were highlighted in the latest annual CPI numbers released by the Australian Bureau of Statistics, which show electricity price increases to be the second biggest causer of inflation over the past 12 months nationwide (see the EUAA’s Press Release here). As electricity is used by all households and businesses, when its price increases rapidly it causes the cost to produce other goods and services to also go up and eventually this finds its way to every supermarket checkout. Businesses and households are worse off as it the economy. Network price increases approved by the Australian Energy Regulator are the single biggest cause of recent electricity price increases.
NSW Has an Electricity Price Problem (30/07/10)
The latest CPI figures show that in 2009/10 electricity prices in NSW went up by 23 per cent and that this was the single biggest factor behind inflation in the State. Next year will be similar, with electricity prices having already increased by an average of 10 per cent from 1st July 2010. The large electricity price increases are being driven by a series of steep increases in the monopoly network charges of the NSW electricity utilities, approved by the Australian Energy Regulator last year and made even worse by an appeal that the NSW government owned businesses subsequently launched and won. These State Government companies will be spending vast amounts of money over the next four years and their already high cost and inefficient operations will get even worse. NSW households and businesses will not only pay more for the electricity but also virtually everything else they buy right up to the point of the supermarket checkout. See the EUAA’s Press Release here.
Increase to Market Price Cap/Voll (30/06/10)
As of July 1, 2010 the maximum price (Maximum Price Cap or MPC) that generators in the NEM can charge for their generation increases from $10,000/MWh to $12,500/MWh. The Cumulative Price Threshold (CPT), the threshold that results in administered pricing by the market operator, when it is breached over a rolling 7 day period, increases to $187,500 from $150,000. These increases have come about after a rule change request from the AEMC in December 2008. At the time of the rule change request the AEMC had concerns over reliability in the NEM from 2011 to 2014. Other concerns were the potential impact of a carbon price for the energy sector. The AEMC believed that increasing the MPC would incentivise long-term contracting for market participants and encourage investment in generation. Increasing the maximum price has a significant impact on the spot market and increases average spot prices significantly especially in South Australia.
AER Approves Electricity Distribution Pricing Proposals for NSW, SA and Qld for 2010-11 (28/06/10)
The AER has a recently approved the electricity distribution network tariff pricing proposals from the Electricity Distributors in New South Wales, Queensland, and South Australia for the year 2010-11.
These proposals set out the new tariffs for all classes of customer and are based upon the recent final decisions by the AER on the 5-year prices and revenues for 2010-2015 for Qld and South Australia. Note that in the case of Energex their proposal also set out the new kVa tariffs for large customers.
In the case of the NSW distribution tariffs, these increases are based on the AER's 2009 final decision for the period 2009-2014 but also incorporate the impacts of the businesses’ appeal to the Australian Competition Tribunal. The Tribunal granted these NSW distributors and the NSW Transmission company Transgrid nearly $2 Billion in extra revenues over that 5-year period.
The pricing proposals for all the distribution businesses can be found on the AER's website here: http://www.aer.gov.au/content/index.phtml/itemId/737212
In the case of NSW the new distribution tariffs will also be passing through the new transmission tariffs from Transgrid also adjusted for tribunals decision, which can be found here: http://www.transgrid.com.au/network/tp/Pages/default.aspx.
We suggest that you contact your retailer and/or your particular distribution supplier if you need any further specific information, if they have not already contacted you about this.
Member
Briefing: AER Draft Decision on Victorian Electricity
Distribution Prices - AER makes
strong draft decision on Victorian Electricity Distribution
price - EUAA efforts bear fruit (21/06/10)
The AER has put
its best foot forward and has made a strong decision on the
prices and revenues proposed by the Victorian Electricity
Distribution businesses. They have strongly reduced
expenditures meaning electricity distribution network prices
will go down in real terms if the decision is upheld.
Members can read
more about it in our member briefing
here which also
sets out the price changes for each of the five distribution
areas in Victoria.
EUAA's annual Energy Price & Market Update (EPMU) (09/06/10)
The EUAA’s annual Energy Price & Market Update (EPMU) being held in Melbourne on Wednesday 16th June will bring you up-to-date on the latest decisions affecting electricity network prices. In a major session devoted to this important area, the Acting Chair of the Australian Energy Regulator (AER), Andrew Reeves, will address the seminar as will Hugh Gleeson, CEO of United Energy and Alistair Parker of SP Ausnet, both Victorian electricity distributors. This will be followed by a panel discussing network prices facilitated by Bruce Mountain, Carbon Market Economics and made up of all the above plus customer perspectives. The AER has just released a draft decision on Victorian distribution prices for the next 5 years and other recent decisions have resulted in major price increases in NSW, Qld, SA and Tas. If you need a good reason why you should not miss this year’s EPMU this is it. Download the program and registration form here.
Member Briefing: AER Final Determinations on Queensland and South Australian electricity distribution network prices and revenues 17/05/10)
The Australian Energy Regulator (AER) has recently made its final determination on the allowed Revenues and Prices for the Queensland and South Australian distribution businesses Ergon Energy, Energex and ETSA Utilities. Both determinations are very disappointing for users as the lock in very large price increases over the next five financial years and start with a very large first year price increase. The Member Briefing (click here) sets out these increases and provides some further information and analysis. The network companies will soon be submitting their tariff proposals to the AER for the year starting 1st July 2010. Members please see briefing here
EUAA Submission: Jemena Gas Networks AER Draft Determination on 2010-2015 access arrangements (17/05/10)
In February 2010 the AER has released its draft decision on Jemena Gas Networks. Their decision means a strong reduction to the allowed expenditures which Jemena requested. This reduction means the large price increases proposed by Jemena would also be curtailed. The EUAA has made a submission (click here) in response to the draft decision commenting on these and other issues, some of which remain of concerns to members such as the implementation of Jemena's proposed curtailment scheme. The Final decision is due this month. Members please see submission here
UNAA World Environment Day Awards 2010 - Sustainability Leadership Award & Business Awards - CALL FOR NOMINATIONS (03/05/10)
Nominations are now open nationally for the above Awards (For complete guidelines, entry criteria and nomination forms, please visit www.unaavictoria.org.au.
In support of the International Year of Biodiversity 2010 and this year’s United Nations World Environment Day theme ‘Many Species, One Planet, One Future” a new Department of Sustainability and Environment Biodiversity Award has been launched that seeks to recognise the best company, organisation, local government, community or individual that has demonstrated innovation and excellence in the development and management of Australia’s biodiversity.
Nominations close 5pm, Friday 14 May. For further information please contact Catherine Sutherland, Program Manager, United Nations Association of Australia (Victorian Division) Tel: 03 9670 7878 Fax: 03 9670 9993
office@unaavictoria.org.au
www.unaavictoria.org.au
Energy Efficiency Steering Committee (14/04/10)
EUAA has formed the above steering committee and to commence its work will initially focus on guiding the development of the EUAA’s submission to the PM’s Task Group (due 3rd May). The Energy Efficiency Steering Committee has nine members made up of EUAA members from different industries and states.
Recent Changes to the Renewable Energy Target (01/04/10)
The Minister for Climate Change and Water, Senator Penny Wong, has recently announced some very significant changes to the Renewable Energy Target (RET). These changes are likely to have a significant impact on REC costs. A member briefing is available for members to view here.
