August Retail Pricing Update

August Retail Pricing Update

AU Energy Compliance
Retail prices have dominated the headlines over the past week, with ongoing discussion of some retailers posting record profits and resultant calls for a Royal Commission into Energy. At the same time there have been some significant changes relating to energy retail pricing which have either been announced or recently came into force. In light of this we provide a quick update on the National Energy Guarantee (NEG), electricity default prices and changes to the display of pricing information.   By Dr Drew Donnelly, Compliance Quarter. 1. Emissions obligation in the NEG – gone for now Perhaps the most significant of the Commonwealth Government’s policies intended to reduce retail electricity prices was the National Energy Guarantee (NEG). On 20 August then Prime Minister, Malcolm Turnbull, announced that the emissions obligation…
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Understanding the Reliability Obligation: Part 2 of the NEG Consultation

AU Energy Compliance
We recently discussed the Energy Security Board’s (ESB) consultation on high-level design for the emissions obligation in the National Energy Guarantee (https://compliancequarter.com.au/information-national-energy-guarantee/). Today we look at the second component, the reliability obligation. That is, the obligation that market retailers (and perhaps other market customers or the AEMO) have to ensure that there is sufficient dispatchable energy available for reliable energy provision. [caption id="attachment_3170" align="aligncenter" width="640"] Photo by Gabriel Spenassatto on Unsplash[/caption] By Dr Drew Donnelly, Compliance Quarter. Note, this is not a comprehensive summary of the consultation document and to see the full document and list of consultation questions go to;   http://www.coagenergycouncil.gov.au/sites/prod.energycouncil/files/publications/documents/Energy%20Security%20Board%20National%20Energy%20Guarantee%20-Consultation%20Paper_0.pdf 1.How should the ‘reliability gap’ be forecast? ESB asks how reliability pressures which would trigger the obligation might be forecast. The ESB proposes that the forecasting horizon be…
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Further information on the National Energy Guarantee

Further information on the National Energy Guarantee

AU Energy Compliance
Yesterday we received some further information on the National Energy Guarantee in the form of a consultation paper. We have summarised this for you below. Also of interest was the release of the following (thanks to the Smart Energy Council for the heads up): Climate Council energy storage report http://www.climatecouncil.org.au/battery-storage-2018 International Energy Agency report on Australia (link to report here) When we first discussed the National Energy Guarantee (NEG), details were thin on the ground. New materials have just been released by the Energy Security Board (ESB) providing a significant amount of information about how the NEG might operate and asking for stakeholder input. As this is a significant piece of reform we look at the two key components of the NEG separately. In today’s piece, we look at the…
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The National Energy Guarantee (NEG)—what we know so far

AU Energy Compliance
On 17 October, the Commonwealth Government announced that it intends to introduce a ‘National Energy Guarantee' (NEG) scheme.[1] The scheme would introduce reliability and emissions obligations for energy retailers with the goal of delivering more reliable and lower emissions generation, each year. By Dr Drew Donnelly, Compliance Quarter. In today’s piece we describe the new policy and how it may be operationalised. Note, at this stage the National Energy Guarantee is Commonwealth Government policy, but it is not law and there are several steps that need to be taken before it could be finalised (we explore this in the final section of the article). The National Energy Guarantee The reliability obligation would be set by the Australian Energy Market Commission (AEMC) and Australian Energy Market Operator (AEMO) and would set…
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