Electricity price update

This article provides an update on electricity invoice costs associated with Victorian network charges, carbon price premiums and mandatory environmental schemes.

Prepare now for the price on carbon (01/12)

While January can be a quieter month for many businesses, with less than seven months until the introduction of a carbon price there are steps need to take immediately to be ready. Different levels of management will have different responsibilities.

Draft Energy White Paper (12/11)

The Draft Energy White Paper was released by Resources Minister Martin Ferguson on 15 December. The document was prepared in a very different environment compared to that which existed in 2004, when the last Energy White Paper was released. Australia’s annual energy exports have risen from $24 billion to around $69 billion.

Think Small: The Australian Decentralised Energy Roadmap (12/11)

Recognising the impact that rising electricity use and in particular, rising peak demand is having on the cost of electricity, the Intelligent Grid Research Program is investigating technologies and practices to make Australia's electricity networks smart, greener and more efficient. One outcome of the iGrid Research Program is the Australian Decentralised Energy Roadmap, which was released on 15 December.

Summary of planning considerations for the incoming price on carbon (11/11)

At the centre of the Clean Energy Future legislation is the price on carbon - directly targeting Australia’s largest emitters but having the broader effect of signalling a shift towards a low carbon economy.

The carbon price will have a cost and profit impact, and it will affect a business' customers, supply chain and create shifts in competitive position. There are also opportunities. These lie in energy efficiency, carbon credits, low carbon product design, new technologies (renewable energy, control systems) and new services.

Use the guide to plan your business' response.

How the game has changed: are energy saving projects your hidden opportunities?(11/11)

We are now in a vastly different financial landscape to 2008.

Companies need to go back to the drawing board, dust off project concepts and find many more that had been dismissed as not viable in the past. Cogeneration projects, more capital intensive energy productivity projects, extensions to heat recovery systems, and other energy savings investments that did not stack up then may well stack up now.

It is your fiduciary duty (and your Board’s) to act on these opportunities.

Carbon Price 2011: What CFOs need to know (10/11)

For CFOs there are specific implications arising from a price on carbon for corporate profits, finance, planning, forecasting, risk management, compliance and investor relations.

CFOs need to understand the range of new costs, mitigate their impact, and discover new business opportunities. They also need to minimise carbon risk, and ensure that robust systems are in place which comply with the principles of comparability, completeness, accuracy and transparency.

To assess your business' carbon status you should focus on:

Carbon Price 2011: What energy and carbon managers need to know (10/11)

Energy managers need an informed understanding of the carbon impacts and a clear strategic response. Carbon brings opportunities, and energy managers should investigate energy efficiency and renewable energy projects.

Carbon Price 2011: What CEOs need to know (10/11)

The passing of the Clean Energy Future legislation represents a structural shift for Australian businesses. CEOs will need to lead their businesses to the new carbon economy.

Carbon management skills, systems and processes: how adaptable is your business? (10/11)

The introduction of a price on carbon in July 2012 will touch many aspects of a business. Right now the task is to understand the impact on energy prices, your supply chain and the degree to which the carbon cost will be passed through, as well as the effects on customers and competitors.

Carbon Price 2011: new proposed opt-in scheme (09/11)

In a change to the 'Securing a Clean Energy Future' policy announcement delivered in July, the regulations may enable a company to opt-in to the carbon scheme after 2013. This provision is an alternative to receiving a reduction in fuel tax or excise.

By managing your carbon liability you have a greater control over your corporate risk profile. Energetics anticipates the opt-in scheme to be a complex issue for many businesses; however investigation may identify several business advantages through potential cost reduction, procurement of carbon offsets and cash flow benefit.

Carbon price 2011: update on establishment key funding bodies (09/11)

While we await more details about funding, planning for renewable energy, low emissions technology and large scale energy efficiency projects should commence now. Such projects require considerable lead times: typically 2-4 years for a large project.

Changes to Victoria's Energy Efficiency Target (09/11)

From 1 January 2012 the Victorian Energy Efficiency Target (VEET) will be expanded to cover business users. VEET has been in place since 1 January 2009, with a target of reducing greenhouse gases by 2.7 million tonnes per annum across residential customers.

Extension and expansion of the EEO program (09/11)

Under the "Securing a clean energy future" package of measures, an expansion of the Energy Efficiency Opportunities (EEO) program was announced.

Australian energy - no longer a bargain (09/11)

In this article we provide some forecasts of likely future energy prices, the impacts on business and look into some of the underlying influences that will impact delivered energy costs over the next 10 years.

Driving down the cost of energy (09/11)

In the past, a major competitive advantage for Australian industry has been the availability of cheap, abundant energy. As a consequence, Australian businesses are not nearly as energy efficient as their counterparts in other world economies. We now have an opportunity to drive new efficiencies which will lower costs, reduce emissions and help secure future local energy supplies.

Carbon Price 2011: coverage of fugitive emissions from coal mining (08/11)

Fugitive emissions of greenhouse gases (i.e. methane and carbon dioxide) from open cut and underground coal mines will count towards the 25 ktCO2-e threshold and also be subject to the carbon price. The only exception is fugitive emissions from decommissioned mines.

Carbon Price 2011: Aspects of the draft legislation to watch for possible, future amendment (08/11)

While the details provided in the draft legislation are essentially what we saw in “Securing a clean energy future”, and there are no big surprises, Energetics has identified some issues that require further consideration or clarification from the government.

Carbon price 2011: which waste facilities will be covered? (08/11)

Landfill facilities will not be liable for emissions that arise from waste deposited prior to 1 July 2012, however legacy waste emissions will be included in the calculation of the facility’s threshold.

New international energy management standard provides opportunity for EEO participants (08/2011)

The Australian Government's Energy Efficiency Opportunities program encourages large energy-using businesses to improve their energy efficiency by improving the identification, evaluation and resulting implementation of cost effective energy savings opportunities. Participation in the program is mandatory for corporations that use more than 0.5 petajoules (PJ) of energy per year.

25 kt CO2-e threshold does not include liquid fuels (07/11)

Following consultation with Minister Combet's office, Energetics has been informed that all liquid fuels (transport and stationary) currently covered by the fuel excise arrangements, will not be included in the calculation of the 25kt CO2-e scope 1 facility threshold.

Incentives for reducing the emissions intensity of your business (07/11)

The Clean Energy Future announced that no maximum cap on permit allocations will apply to existing facilities. Depending on where your business sits in relation to the industry average, you may have the opportunity to secure additional permits and with this assistance, fund projects to reduce your carbon exposure. Your business could secure a competitive advantage as well as protect earnings.

How has business responded to the carbon price announcement? (07/11)

Since the government's announcement of the carbon price, we have seen a number of statements made by highly impacted companies that are more measured than the rhetoric seen in the media to date.

Increased rigor on accurate carbon data (07/11)

The opportunity now exists to review and revise your data sets to ensure that you are ready for the introduction of the carbon tax in July 2012. The new legislation will require a significant increase in the scrutiny of your carbon data.

Australian carbon offsets (07/11)

The Carbon Farming Initiative enables you to acquit up to 5% of your liability through the purchase of Australian carbon credit units.

Securing Australia's Clean Energy Future (07/11)

The carbon price of $23 per tonne was delivered in a package of measures themed around securing a "clean energy future" for Australia. It was not simply focussed on introducing a carbon price mechanism.

Carbon hot spots - Australia's emissions intensive industries (07/11)

Treasury modelling has indicated a modest overall impact of a one off 0.7% for ordinary households. Yet the emissions intensity and degree of compensation will determine the actual carbon impact. As a first step, Energetics has analysed a snapshot of ASX listed companies on a revenue basis. This analysis examines emissions intensity of Australian operations without considering compensation. This directs focus to sectors that will be impacted.

Carbon price impact on energy prices (07/11)

Energy prices have increased regardless of a price on carbon but the introduction of a price on carbon will continue to impact energy prices going forward.

Over $10B compensation available to business (07/11)

Australia's changing energy mix (07/11)

Australia is aiming to generate 20% of its primary energy from renewable sources by 2020, with an extended target of deriving 40% of its energy from renewable sources by 2050.

Latest trends in network and energy prices (07/11)

This article considers the latest trends in network and energy prices, and opportunities to significantly reduce your electricity costs through tariff analysis, planning and renegotiation of your electricity supply contracts.

Carbon cost pass-through arrangements (07/11)

For several years there has been uncertainty surrounding the start date and format of a potential cost on carbon in Australia. As a result, most electricity retailers have developed contract clauses to enable them to recover costs from customers upon the introduction of any carbon scheme. The nature of carbon cost recovery clauses differs between electricity retailers. Given the lack of certainty regarding the structure of any carbon scheme, the clauses may result in carbon pass through costs that bear little correlation with actual costs incurred by the retailer.

Creating value from reporting (07/11)

An opportunity exists for your business to capitalise on existing data and information gathered through the compliance reporting process to create ongoing value. You have the data – so what next?

Compliance Reporting = Robust Data = Business Value and Opportunities

Compliance reporting provides the opportunity to strategically position your business and differentiate yourself in the market. Benchmarking and the identification of risks and opportunities are only the tip of the iceberg.

Audit and verification of your compliance (07/11)

With a number of key energy and carbon reporting initiatives and programs on the horizon, Energetics is helping clients develop processes to identify associated risks and find solutions to manage those risks. This approach will ultimately give businesses confidence in their data and systems to make key strategic decisions and lower their risk profile.

Carbon Impact Matrix tool: understanding the impact of carbon on your business (06/11)

A price on carbon is coming to Australian businesses. Despite the current uncertainty around the details, you can calculate the costs of carbon arising from both direct emissions and those that are incurred indirectly across the supply chain. Energetics has developed a simple tool for estimating the impact on your business and to inform preparations to minimise costs and protect profits.

Understanding carbon costs in the supply chain (06/11)

The impact of a cost of carbon on a business will be more than simply the direct cost increases (energy price increases or increased cost of refrigerants and other greenhouse gases).

A well prepared organisation will also need to understand and plan for all of the supply chain and other indirect costs, as well as the compensation mechanisms in place for many sectors. To position your business to best advantage, it is important to understand the impacts on sensitive customers and the ability to pass-through costs: as received from suppliers and in turn, pass onto customers.

Evaluating greenhouse gas abatement options (05/11)

A powerful decision making tool when assessing a business' carbon exposure and opportunities to reduce carbon emissions, is the Greenhouse Gas Abatement Cost Curve.

Federal Budget 2011: key announcements for climate policy, energy and carbon (05/11)

In this year's Federal Budget, the Government has included changes to climate change programs aimed at better aligning them with the objective of introducing a carbon price. Below are the key, relevant excerpts from the Budget Papers (), that relate to climate change policy, energy and carbon management.

Dates to note in 2011

In this article we provide a brief overview of some key dates for 2011.

Demand Side Management Programs (05/11)

Demand side management (DSM) is the use of financial incentives, education, or other programs to shift peak energy loads to other times, cut the peak load, or reduce the total load by increasing energy efficiency.

Will the carbon price deliver a low carbon economy? (02/11)

On 24 February 2011, a passionate Prime Minister Gillard released a proposed framework for a carbon price mechanism: essentially a resurrection of the Carbon Pollution Reduction Scheme (CPRS) and not a carbon tax.

Energy Market Update for February 2011

While the first two months of summer were notable for the absence of extreme market events, February has hit NSW with force, with temperatures in the first six days of the month in the vicinity of 40 degrees in some parts of the state.

Opportunities in NSW to Participate in the Energy Savings Scheme (ESS) (02/11)

An opportunity exists for NSW businesses to generate Energy Savings Scheme (ESS) Certificates that may have substantial value when either traded or used to improve the return on energy efficiency projects.

Tax Breaks for Green Buildings (02/11)

In a joint announcement, Assistant Treasurer Bill Shorten and Parliamentary Secretary for Climate Change and Energy Efficiency, Mark Dreyfus, released the Tax Breaks for Green Buildings Consultation Paper.

NGER 2010/11– Key issues for reporters (02/11)

Companies preparing to report under the National Greenhouse and Energy Reporting Act (NGER) should be aware of several key changes for the coming year.

EEO consultation on proposed program changes – key issues to consider (02/11)

As the Energy Efficiency Opportunities (EEO) program moves into the second 5 year cycle, the Department of Resources, Energy and Tourism has proposed some potentially significant changes. Currently open to public consultation, the proposed changes cover the entire program, from registration, to conducting assessments and the framework through to reporting.

The Green Building Fund Round 7 (02/11)

The Green Building Fund aims to reduce the impact of Australia's built environment on greenhouse gas emissions, by reducing energy consumed in the operation of existing commercial office buildings, hotels and shopping centres.

Energy and Carbon Markets: what happened in 2010, what to expect in 2011 (Summer 2010)

This article looks back on what changed in Australian energy markets in 2010, considers the latest trends in energy prices and reviews what may be in store for 2011. Energetics would be happy to explain how these changes impact your business specifically.

Energy Partnerships - value beyond just cost savings (Summer 2010)

The current softness in the wholesale electricity futures market is presenting customers with significant savings opportunities on a financial level. This is especially the case for those users coming out of contracts negotiated during the price spikes in 2007. This is by no means current news as futures prices have been steadily trending downwards in all NEM regions for the better part of a year.

Energy and greenhouse reporting: a year in review (Summer 2010)

This article provides an overview of a range of carbon and energy reporting programs: NGER, EEO, CDP and GRI, and discusses the convergence of programs towards international standards such as ISO 14 064/ ISO 14 065. The article also discusses the status of carbon labelling in Australia.

2010 Carbon and Energy checklist

The checklist outlines key reporting deadlines and regulatory news updates.

2010 Newsletters

2009 Newsletters

2008 Newsletters

2007 Newsletters

2006 and Prior Newsletters