Preparing for a low carbon future

03 Oct 2008Archived News Climate Change Matters

This article addresses a range of issues for Australian businesses as they prepare for a low carbon future, including reporting requirements, energy pricing, available grants and upcoming conferences.

 

Participants in the Federal Government’s Energy Efficiency Opportunities (EEO) Program: are you ready to report?

According to the timetable, companies in the EEO program should have their first assessments completed and preparations should be well underway to report progress over 30 months from July 2006 to December 2008. Energetics strongly advises that collating the information to meet the reporting requirements will not be straight forward for all companies. We recommend that companies do not put this requirement off until the last minute, but commence work now in order to ensure accurate and consistent reports, lower costs and lower risk.

Energetics has assisted a number of companies to prepare and/or review their EEO reporting to date.

EEO clients may also want to consider EEO Verification to provide confidence that your processes meet EEO requirements. Conducting periodic reviews of your assessment methodology and process, as applied at your corporate level and at site or activity level, is an effective, low-cost means of ensuring your business is meeting the requirements of EEO.

Is your business subject to National Greenhouse and Energy Reporting (NGER)?

From 1 July 2008, all controlling corporations and facilities that exceed the NGER threshold need to be collecting their energy and greenhouse data.

Registration can occur any time from 1 July 2008 but must be completed by 31 August 2009, with the first NGER report required by 31 October 2009. Data collection should really commence now in order to ensure readiness for the first reporting date. 

In the next few weeks we expect to see the Greenhouse and Energy Data Officer release a draft for consultation of theExternal Audit Legislative Instrument. This will outline proposed standards for auditors of NGERS reports and may be of interest to companies that will be required to have an external audit undertaken. 

Forward planning to manage energy costs

Businesses can mitigate their exposure to future energy price volatility by taking early action. This is especially important for those customers who have electricity, gas and green product contracts that expire by 31 December 2009.

Right now, the outlook is affected by:

  • water scarcity
  • record demand for coal and oil
  • higher costs of generation assets
  • the introduction of a future carbon price.

Experience shows that those who plan early and prepare for market downturns can capture significant savings. Energetics has seen customers save more than $5/MWh on the retail price through good timing and fast effective tender processes. For instance, a $5/MWh saving on a 50 GWh per annum load is worth $250,000 per annum.

To help manage this risk and to ensure our customers are informed and able to respond quickly to market changes, Energetics provides a regular market watch service. This is supported by practical tools and experience to conduct procurement, data and bill checking activities.

 

 

 

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