ELECTRIC POWER DISTRIBUTION – AUSTRALIA

Renewables generate 19pc of grid already

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Original article by Ben Potter
The Australian Financial Review – Page: 6 : 6-Jul-18

Renewable energy was responsible for just under 19 per cent of National Electricity Market generation in the year to June 2018, according to the Australia Institute. The figure includes rooftop solar generation, or 15.7 per cent if rooftop solar generation is not included. The Australia Institute claims that new solar and wind generation that is being built or committed to under the federal government’s Renewable Energy Target and the Victorian government’s RET would be sufficient for the former to meet its 2030 emissions target without the need for a National Energy Guarantee.

CORPORATES
THE AUSTRALIA INSTITUTE LIMITED, REPUTEX AUSTRALIA PACIFIC PTY LTD, GREEN ENERGY MARKETS PTY LTD

ACCC has no power to break up AGL

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Original article by Ben Potter
The Australian Financial Review – Page: 10 : 24-May-18

AGL Energy’s market power has come under scrutiny in the wake of its refusal to back down on plans to shut down the Liddell coal-fired power station in 2022. However, former Australian Competition & Consumer Commission chairman Allan Fels says neither the competition regulator or the federal government have the power to force a company to sell assets or take action to reduce its market share. Fels says there may be a case for adding divestiture powers to section 46 of the Competition and Consumer Act, although the Harper review in 2015 rejected this in favour of an "effects test".

CORPORATES
AGL ENERGY LIMITED – ASX AGL, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, ORIGIN ENERGY ASSET MANAGEMENT LIMITED, ENGIE SA, ENERGYAUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, DELOITTE ACCESS ECONOMICS PTY LTD

CET might not reduce power bills, says Sims

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Original article by Ben Potter
The Australian Financial Review – Page: 7 : 17-Oct-17

The Australian Competition & Commission has released the interim report of its inquiry into electricity prices. The report concludes that electricity network costs were the main cause of a sharp rise in electricity prices over the last decade. Meanwhile, ACCC chairman Rod Sims says that although a Clean Energy Target could potentially contribute to downward pressure on wholesale electricity prices, this might be offset by the impact of renewable energy target subsidies on electricity prices for consumers.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, JACOBS GROUP (AUSTRALIA) PTY LTD, AUSTRALIA. OFFICE OF THE CHIEF SCIENTIST, FRONTIER ECONOMICS PTY LTD

Coal mine strife stokes supply fears

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Original article by Mark Ludlow, Angela Macdonald-Smith
The Australian Financial Review – Page: 6 : 21-Sep-17

A Glencore spokesman rejects suggestions that protracted enterprise agreement negotiations at its Hunter Valley coal mines has affected its ability to secure new supply contracts or fulfil existing contracts. Tony Maher of the Construction, Forestry, Mining & Energy Union claims that the industrial action has had a material impact on Glencore and resulted in a 20 per cent increase in the price of coal. There are concerns that the dispute could also result in higher electricity prices and affect electricity supply.

CORPORATES
GLENCORE PLC, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, AUSTRALIAN ENERGY COUNCIL, AGL ENERGY LIMITED – ASX AGL, ORIGIN ENERGY LIMITED – ASX ORG, PACIFIC NATIONAL PTY LTD, AURIZON HOLDINGS LIMITED – ASX AZJ

DUET investors buoyed by CKI’s $7.3b offer

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 11 & 24 : 6-Dec-16

Shares in DUET Group closed at $2.74 on 5 December 2016, after reaching an intra-day high of $A2.82. Hong Kong-based Cheung Kong Infrastructure has proposed to pay $A3 per share for the energy infrastructure group, whose assets include the Dampier-Bunbury gas pipeline in Western Australia. However, DUET has noted that the offer is unsolicited and not binding, and there is no certainty that CKI will make a formal bid. Mark Busuttil of JP Morgan says the offer represents full value and a rival bid is unlikely.

CORPORATES
DUET GROUP – ASX DUE, CHEUNG KONG INFRASTRUCTURE HOLDINGS LIMITED, JP MORGAN AUSTRALIA LIMITED, RARE INFRASTRUCTURE, ARGO INVESTMENTS LIMITED – ASX ARG, UNISUPER LIMITED, RBC CAPITAL MARKETS, 4D INFRASTRUCTURE PTY LTD, CITIGROUP PTY LTD, AUSGRID PTY LTD, STATE GRID CORPORATION OF CHINA, AUSTRALIA. DEPT OF THE TREASURY

Origin Energy demerger chat emerges again

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 & 22 : 19-Aug-16

Australian-listed Origin Energy has posted a 2015-16 net loss of $A589m, compared with a loss of $A658m previously. The result was marred by after-tax impairment charges of $A515m, and the diversified energy group’s underlying profit was 41 per cent lower at $A354m. Meanwhile, Origin reduced its net debt by $A4bn to $A9.1bn due to a capital raising in 2015 and asset sales. CEO Grant King says a demerger of its LNG and energy retailing businesses remains a possibility.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, ALLAN GRAY AUSTRALIA PTY LTD, CITIGROUP PTY LTD, JP MORGAN AUSTRALIA LIMITED, STANDARD AND POOR’S CORPORATION

AusNet full-year profit dives 87pc on hefty tax charges

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 21 : 15-May-15

Australian-listed AusNet Services has posted a 2014-15 after-tax net profit of $A22.6m, which is 87 per cent lower than previously. The result was marred by a payment to the Australian Taxation Office to resolve a tax dispute. Revenue of $A1.83bn rose by 1.9 per cent and EBITDA was 2.9 per cent higher at $A1.05bn. Investors will receive a final distribution of $A0.418 per security.

CORPORATES
AUSNET SERVICES HOLDINGS PTY LTD – ASX ANV, AUSTRALIAN TAXATION OFFICE, CHINA STATE GRID, SINGAPORE POWER LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED