Latest News

10 Feb 2015 Opinion

Good government could start by removing the RET barnacle

Along with key budget measures, the RET sits unresolved and festering. IES CEO, Hugh Bannister, argues for an early RET resolution.

Good government could start by removing the RET barnacle

Of all the mounting layers of barnacles slowing the Australian ship of state, the Renewable Energy Target ought to be one of the easiest to scrape off.  The Warburton review was sprung on an unsuspecting industry and the subsequent stand-off has left it in a state of inanimate suspension.  It’s hard to see what is driving the government’s approach to this issue.  There are no direct budget implications.  The Warburton review’s own modelling, not to mention the modelling of other industry experts including IES, point to the RET delivering lower retail electricity prices, so the consumer benefits from the RET. Many media commentators misunderstand this point.  To be sure, profit margins of existing generators have been and will be less than otherwise if the RET remains. The negotiation is stalled at a number somewhere between the high thirties and low thirties of thousands of GWh.  Other concessions to soften the impact of the target have been made, so the points of difference between the parties are hardly wide.   A quick decision on the RET, one way or the other, will allow the electricity industry as a whole to move on with confidence.

Read more

06 Feb 2015

IES makes submission to the Australian Energy Regulator

IES recently made a submission to the Australian Energy Regulator for its consultation on regulating innovative energy selling business models.

IES makes submission to the Australian Energy Regulator

IES recently made a submission to the Australian Energy Regulator (AER) for its consultation on regulating innovative energy selling business models. The consultation may result in additional compliance obligations for photovoltaic (PV) panel providers that include energy storage systems as part of their product offering. IES is of the view that the regulatory framework should support the take up of energy storage technologies as these systems will facilitate customer choice and competition in energy markets. Alternative energy sellers have a different business model to retailers who already hold retail authorisations and the AER guidelines for individual exemptions should take this into account.A copy of the IES submission can be found here.

Read more

20 Oct 2014

Bill Nixey joins IES Advisory as Lead Consultant

Energy industry professional Bill Nixey joined the IES Advisory team today as Lead Consultant. Bill will lead the Australian consulting section of IES Advisory.

Bill Nixey joins IES Advisory as Lead Consultant

Energy industry professional Bill Nixey joined the IES Advisory team today as Lead Consultant. Bill will lead the Australian consulting section of IES Advisory and manage a team of four Senior Consultants. Bill has fifteen years’ experience in both the electricity and gas industries and has worked for AGL, Origin Energy, Ausgrid, and EDF Energy (UK). He has an in depth understanding of the structure of the energy industry including retail and billing, wholesale markets and regulated networks.

Read more

16 Oct 2014 Opinion

IES CEO's submission to AEMC

Our Chairman and CEO, Hugh Bannister, recently made a submission to the AEMC commenting on the proposed rule change on network pricing. This is an important topic that is sleeping in the public mind now but which is likely to attract controversy when the results of the change filter through to the average retail customer.

IES CEO's submission to AEMC

I wish to make a few specific and personal comments on the approach laid out in the draft determination, supplemented by impressions gained during the September consultation workshop on this topic.

A lack of cost reflectivity in consumer tariffs generally and network tariffs in particular has been a feature of the Australian market from the beginning. Air conditioning has been a growing source of demand, imposing additional strains on the network for a long time, and yet there was no great push before to reform network pricing; rather, networks simply gained approval for and built the capacity needed to accommodate the growth.  Those costs have gone into increased network charges across the board.

The current interest in tariff reform seems to have been driven by the related issues of declining demand and the increasing viability and penetration of embedded rooftop solar PV technology, with a further technology boost in prospect from improving battery technology and costs. Notably, such technology poses little or no extra cost burden on the network.  However, under existing tariffs high levels of PV penetration appear to threaten the current regulatory and business models that sustain the profitability of distribution businesses.

...

Read more

19 Sep 2014

IES Advisory at Eastern Australia’s Energy Markets Outlook 2014

IES Advisory completes a one day workshop at the Eastern Australia’s Energy Markets Outlook 2014 Conference in Sydney. The topic of the workshop was “Understanding the east coast gas price and supply outlook”.

IES Advisory at Eastern Australia’s Energy Markets Outlook 2014

IES Advisory completes a one day workshop at the Eastern Australia’s Energy Markets Outlook 2014 Conference in Sydney. The topic of the workshop was “Understanding the east coast gas price and supply outlook”. A particular focus was to review the current market environment for gas on the east coast of Australia and present modelling studies of future gas and related market outcomes. The workshop was especially of interest to those whose business is critically dependent on the future outlook for gas supply, either directly or indirectly.

Read more

09 Sep 2014

IES Advisory presents update at Myanmar Energy Master Plan Workshop

The Myanmar Energy Master Plan Workshop took place in Nay Pyi Taw (Myanmar) today.

IES Advisory presents update at Myanmar Energy Master Plan Workshop

The Myanmar Energy Master Plan Workshop took place in Nay Pyi Taw (Myanmar) today. At total of 80 representatives attended, including Myanmar’s Deputy Ministers for Electric Power, Energy, and Industry.

The World Bank, Asia Development Bank, and Japan International Cooperation Agency were also in attendance. IES Advisory presented on the progress of its work on the long term energy master plan.

Read more

04 Aug 2014

IES Advisory completes review of Singapore Futures Trading Market

IESAdvisory recently completed its review of the newly formed Singapore Futures Market (EFM). The results found that vertical integration is significantly impacting market liquidity.

IES Advisory completes review of Singapore Futures Trading Market

IESAdvisory recently completed its review of the newly formed Singapore Futures Market (EFM). The results found that vertical integration is significantly impacting market liquidity. ‘Gentailers’ (or retailers who own generators) make up 63% of the total electricity consumed in Singapore and in many cases they do not need forwards market hedge coverage. Adding to the challenges is the fact that there is surplus generation capacity, and that currently there are more sellers than buyers in the market. The success of the market will be dependent on increased participation by these buyers.

Read more

Hey, it seems you're using a browser that is a little past its time and our website might not be able to perform as it should. If you’d like to have the best experience on our website, you can easily find out about updating your browser here

dismiss this message