ELECTRICITY – PRICES – AUSTRALIA

Network CEOs strike back on power prices

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 7-Nov-18

Energy Minister Angus Taylor will meet with the CEOs of power retailers on 7 November, where he will give them until 1 January to begin reducing electricity prices. Meanwhile, the CEOs of electricity network operators argue that regulated network costs have been cut significantly. TransGrid CEO Paul Italiano says its costs now comprise only 3.4 per cent of the average household electricity bill in New South Wales. Electricity retailers in turn argue that network charges, renewable energy subsidies and wholesale tariffs are the major contributors to high electricity bills.

CORPORATES
AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, TRANSGRID, AUSGRID PTY LTD, ORIGIN ENERGY LIMITED – ASX ORG, AGL ENERGY LIMITED – ASX AGL, ENERGYAUSTRALIA PTY LTD, ENDEAVOUR ENERGY LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

AGL could face savage hit to earnings

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 6 : 25-Oct-18

Morgan Stanley estimates that the federal government’s proposed measures to reduce electricity prices could potentially slash the 2020 EBITDA of AGL Energy and Origin Energy by up to $361m and $426m respectively. Matthew Blumberg of Hayberry Global Fund adds that government intervention in the electricity sector could in fact result in reduced competition and enable the major players to increase their market share.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, AGL ENERGY LIMITED – ASX AGL, ORIGIN ENERGY LIMITED – ASX ORG, HAYBERRY GLOBAL FUND, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, ENERGYAUSTRALIA PTY LTD, CLP HOLDINGS LIMITED, CITIGROUP INCORPORATED, AUSTRALIAN ENERGY REGULATOR

Cut power bills by new year or else

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 24-Oct-18

The Business Council of Australia has warned that some of the federal government’s proposed measures to put downward pressure on electricity prices could create investment uncertainty. Amongst other things, energy retailers will be required to offer default price contracts from mid-2019, while energy companies could be forced to divest assets if they fail to take sufficient action. The government also proposes to underwrite investment in new reliable energy sources. Prime Minister Scott Morrison says reducing electricity prices and cutting carbon emissions are not mutually exclusive.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN ENERGY COUNCIL, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, VICTORIA. DEPT OF ENVIRONMENT, LAND, WATER AND PLANNING, AUSTRALIAN ENERGY REGULATOR, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Morrison in bid for unity on energy

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Original article by Joe Kelly, Ben Packham
The Australian – Page: 1 & 6 : 23-Oct-18

The federal government will establish a price benchmark for electricity retailers, which was a key recommendation of the Australian Competition & Consumer Commission’s review of electricity prices. The "default market offer" rate will take effect from mid-2019, and is part of the government’s commitment to reducing power bills. Meanwhile, National Party MP Keith Pitt rejects suggestions that the Coalition’s climate change policy was the main cause of its poor performance in the Wentworth by-election.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, NATIONAL PARTY OF AUSTRALIA, LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIAN LABOR PARTY, AUSTRALIA. OFFICE OF THE CHIEF SCIENTIST, AUSTRALIAN ENERGY REGULATOR, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

Greens call for government energy retailer

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Original article by Andrew Tillett
The Australian Financial Review – Page: 9 : 26-Sep-18

The Australian Greens will propose increased government intervention in the electricity market to put downward pressure on prices, including the creation of a publicly-owned electricity retailer. Greens leader Richard Di Natale estimates that a taxpayer-funded electricity retailer could be established at cost of just $85m, while using it could save consumers around $200 a year on power costs. Di Natale will also advocate greater government intervention in other sectors in a National Press Club speech on 26 September.

CORPORATES
AUSTRALIAN GREENS, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, NATIONAL PRESS CLUB (AUSTRALIA), SNOWY HYDRO LIMITED, RED ENERGY PTY LTD, LUMO ENERGY AUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Power price fix will leave customers worse off

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 1 & 2 : 5-Sep-18

The Australian Competition & Consumer Commission recommended in July that a default retail power price be introduced. Its proposal, which would see the adoption of a retail price that would be capped by the Australian Energy Regulator, was recently endorsed by the federal government. However, EnergyAustralia CEO Catherine Tanna is understood to have told New South Wales Energy Minister Don Harwin that 70 per cent of its customers would be worse off if the ACCC’s recommendation was adopted.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN ENERGY REGULATOR, ENERGYAUSTRALIA PTY LTD, NEW SOUTH WALES. DEPT OF ENERGY, CLP HOLDINGS LIMITED, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, AGL ENERGY LIMITED – ASX AGL

Paris targets still on despite exemption

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 31-Aug-18

Environment Minister Melissa Price rather than Energy Minister Angus Taylor has been given responsibility for meeting Australia’s carbon emission reductions target under the Paris climate agreement. Price has expressed confidence that the target will be achieved, noting that the nation is on track to exceed its emissions reduction target for 2020. Policies aimed at reducing electricity prices will be a priority for Taylor, who has indicated that the federal government will adopt many of the Australian Competition & Consumer Commission’s recommendations in its review of retail electricity prices.

CORPORATES
AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN ENERGY REGULATOR, AUSTRALIAN LABOR PARTY

Price cuts come first over Paris emissions

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Original article by Ben Packham
The Australian – Page: 1 & 6 : 30-Aug-18

Australia’s new Energy Minister Angus Taylor says his top priority in the portfolio will be to pursue measures that will result in lower electricity prices, rather than implementing carbon emission reduction targets under the Paris climate agreement. Taylor will use a Council of Small Business Organisations speech on 30 August to criticise the Opposition’s carbon emissions reduction target, arguing that it reduce the nation’s energy security as coal-fired power stations would be forced to close.

CORPORATES
AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIAN LABOR PARTY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, McKINSEY AND COMPANY

Dutton’s $7.5b GST idea a budget blower

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 23-Aug-18

Prime Minister Malcolm Turnbull and Treasurer Scott Morrison have criticised a proposal by Peter Dutton to reduce the cost of electricity by exempting household power bills from the goods and services tax. Turnbull has warned that the states would have to be compensated for loss of GST revenue, while Morrison says it would result in a Budget blowout. Dutton has also proposed royal commissions into the electricity and fuel sectors, as well a reduction in Australia’s annual migrant intake.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Power price warning to Labor states

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Original article by Ben Packham
The Australian – Page: 1 & 6 : 25-Jul-18

The final version of the Federal Government’s national energy guarantee estimates that the average household’s electricity costs would fall by about $550 a year. Previous modelling had suggested that the NEG would reduce electricity bills by about $A400 a year. Meanwhile, the Energy Security Board has warned Labor-led states that investment in green energy programs will be adversely affected if they do not support the NEG at the upcoming Council of Australian Governments meeting. The ESB also says electricity prices will remain high of the NEG is not implemented.

CORPORATES
AUSTRALIA. ENERGY SECURITY BOARD, COUNCIL OF AUSTRALIAN GOVERNMENTS, AUSTRALIAN LABOR PARTY, THE AUSTRALIAN INDUSTRY GROUP, AGL ENERGY LIMITED – ASX AGL, TOMAGO ALUMINIUM COMPANY PTY LTD, CLEAN ENERGY COUNCIL LIMITED