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13-369 File B Documents Page 28 of 76 From: DEWS_ODG [[email protected]] Sent: Wednesday, 9 January 2013 8:47 AM To: Barr, Benn CC: Energy and Water Supply Correspondence Subject: CTS00384-13 MC11807 Correspondence from the Department of Energy and Water Supply Attachments: Serious Anomalies in Small Business Network Tariff 8300

Follow Up Flag: Follow up Flag Status: Flagged

Dear Benn

DG thinks this may be a duplicate - would you investigate and draft a response for DG via email protocols please.

Regards Jennifer

Jennifer Lawrence A/Executive Officer Office of the Director-General (DEWS) Phone: + 61 7 3238 3185 Mobile s.49 DEWS -

From: Energy and Water Supply Correspondence Sent: Tuesday, 8 January 2013 8:47 AM To: DEWS_ODG Subject: FW: MC11807 Correspondence from the Department of Energy and Water Supply

Hi Jennifer

For DG’s consideration. RELEASE Please advise appropriate action.

Thanks DL

Benjamin Marsden Correspondence Officer Cabinet and Correspondence ServicesRTI Planning, Performance and Governance Department of Energy and Water Supply

Level 13, 41 George Street, Brisbane Qld 4000 PO Box 15456, City East Qld 4002 Phone: + 61 7 3006 5976 Short Dial: X 65976 Email: [email protected] [email protected]

From: Trevor St Baker [mailto:[email protected]] Sent: Monday, 7 January 2013 7:08 PM To: Energy and Water Supply Correspondence Cc: '[email protected]'; 'Jeffrey Sommerfeld ([email protected])'; Tony Bellas - External Subject: RE: MC11807 Correspondence from the Department of Energy and Water Supply

Jon, 13-369 File B Documents Page 29 of 76

Resent with the 17th December follow-up email to Minister attached.

Trevor

Jon,

It seems that my home-based emailing on the weekend was not successful, so I will try again.

As a result of the busy festive and vacation season, your response on Friday to my email of 4th November to the Minister seems to have effectively crossed my subsequent email of 17th December 2012 to the Minister, attached hereto, which I was to discuss with his office, hopefully this coming week, s78B(2) - Privacy

As an essentially independent analyst of some standing, and as ERM Power Retail had not previously concentrated on such small business energy customers, except in relation to customers with multiple sites, such as State Schools and medical centres, I have felt compelled to raise the complete travesty for some of the ”real salt-of-the-earth small business owners” of being confronted with GOC Retailer pass-thru network cost increases on 1 July 2012 of the order of 65%, just three months after the new government being elected; and being elected, among other promises, to contain rising electricity prices.

This is not however just the case for those small business customers compelled toDEWS change from the gazetted small business volume tariff from 1 July 2013, and in fact the increased charge for these customers- in most cases is not as great as for small business customers already on the Small Business Network Tariff 8300.

Notwithstanding the process to rescind and backdate the anomalous 8300 Network Tariff increases, failure to rectify this enormous increase in government charges, which was clearly a mistake by Energex, without further delay, can only be seen as indicating that this must have been a deliberate government policy, albeit at odds with all that I understand is the attitude of the new government. In fact the AER wanted to require that more than just those compelled to change from the Gazetted Small Business tariff should have these increases rescinded RELEASE In my follow up email to the Minister of 17th December, I attempted to more briefly set out the apparent public policy flaws in the Small Business Network Tariff 8300 tariffDL increases, and to the observation that increases of such a level for such a small band of Energex customers could not be vital to Energex’s viability, or business return, except for a small unjustified hit on this small band of electricity customers, and that the increase was so counter to any realistic tariff policy direction to incentivise customers to move to competitive RTIdemand tariffs, free of regulatory controls or constraints, especially in the case of business energy customers who should least likely justify government gazetted price protection.

If it would be appropriate, could we meet this week to explain what I believe is the negative impact that this single tariff increase is having on promulgating a wider acceptance of more open “regulation-free” electricity retailing, and even perhaps bring forward some of the tales of serious impacts on small businesses in the State of such huge increases in government electricity network charges, although I believe that impacts of such large increases in network costs on top of the carbon tax, hardly need any more pleadings from those small businesses affected.

I must reiterate that ERM Power has nothing to gain as ERM Power Retail has not until recently concentrated on such small business energy customers, except for its exceptional reputation of the highest customer satisfaction rating of all business energy retailers throughout Australia, and is expanding this service to all deregulated business energy customers. Tony Bellas and I first took our concerns to the executive officer assisting your inter-departmental DG committee, and had hoped that our direct representations to the Minister could serve to bring some urgency to correcting this serious impact on this small, but

13-369 File B Documents Page 30 of 76 important small business electricity customer band. Having started this process, I will be guided by you as to how best to complete this representation to Government, having spent 20 years of my career within public sector electricity corporations.

Regards,

Trevor St Baker Deputy Chairman and Founder

ERM Power Limited

Level 5, 123 Eagle St, Brisbane GPO Box 7152 Brisbane Qld 4001

Ph: 61 7 3020 5103 Fax: 61 7 3020 5111 Mob: s.49 www.ermpower.com.au

DEWS

This email has been sent by ERM Power Limited or a related entity and it may contain confidential- and privileged information. If you have accidently received this email do not use or share the information, notify the sender immediately by return email and delete all copies on your system. If this email contains personal information please handle that information with respect to the privacy of the individual and in accordance with the Privacy Act 1988. Note that emails may not be accurate representations as they can be interfered with. ERM Power Limited’s head office is at Level 5, Riverside Centre, Brisbane QLD 4000. Telephone contact details are +61 7 3020 5100, facsimile +61 7 3020 5111.

Regards,

Trevor St Baker RELEASE

From: Energy and Water Supply CorrespondenceDL [mailto:[email protected]] Sent: Friday, 4 January 2013 3:20 PM To: Trevor St Baker Cc: [email protected] Subject: MC11807 Correspondence RTIfrom the Department of Energy and Water Supply

MC11807

To: Mr Trevor St Baker [email protected] Cc: Honourable Mark McArdle MP, Minister for Energy and Water Supply, Member for Caloundra

Dear Mr St Baker

Re: Changes to Network Tariff 8300

I refer to your email of 4 November 2012 about changes to electricity network tariffs for businesses and specifically those on network tariff code 8300. Your email was forwarded to me by the Honourable Mark McArdle MP, Minister for Energy and Water Supply, Member for Caloundra, for direct reply.

13-369 File B Documents Page 31 of 76

The Minister and I are concerned about how changes to Energex’s 2012-13 network tariffs have impacted on some Queensland businesses. We have spoken with Energex who has acknowledged that some customers are facing significant price increases, and that in some instances the changes and impacts were not adequately communicated to all customers. It is my understanding that Energex has been in contact with retailers and the worst affected customers and provided advice on how to mitigate the increase associated with the changes to network tariffs in 2012-13.

As network tariff pricing proposals are considered by the Australian Energy Regulator (AER) annually, there will be the opportunity for Energex to review the network charges associated with the network tariff 8300 and submit these to the AER in its 2013-14 network pricing proposal. Energex have advised that they are giving careful consideration to the development of their network tariffs for large customers for 2013-14. I therefore encourage you to work with Energex to communicate your concerns and the issues affecting your customers.

The significant increase for the network tariff 8300 resulted from several factors. Energex rationalised three network tariffs that existed in 2011-12 (small - 8300, medium - 8200 and large - 8100) into two tariffs for 2012-13 (8300 and 8100), meaning that the medium demand customers transitioned on to the new small and large demand tariffs. I am advised that Energex structured these charges consistent with the National Electricity Rules (NER). Ultimately the effect of this has been to increase the fixed daily service charge for customers on network tariff 8300 significantly. I acknowledge your point that because the increase is related to the fixed charge, there is little incentive or ability for the customer toDEWS improve their load factor or implement demand side management in order to lower their bill. -

Furthermore, a number of customers moved from ‘energy only’ regulated retail tariffs, where they were charged mostly on a volumetric basis (such as regulated retail tariffs Tariff 20 or Tariff 22), to demand based tariffs. In some cases this was as a result of customers being reclassified from small to large. In addition, the deregulation of the large customer market in South East Queensland (SEQ) meant that some customers, for the first time, experienced a full pass-through of the Energex network charge (meaning some customers were charged on the basis of demand for theRELEASE first time). I understand that it was these customers (i.e. who moved from volumetric based tariffs to demand based tariffs) that have been most adversely affected in terms of increased electricity bills, and Energex has advised that it has worked hard to find solutions for these customers in 2012-13. Furthermore,DL many of these customers have reported that the above mentioned changes were not adequately communicated to them. This highlights the need for strong customer engagement and public communication following any change to Government policy, or to the way distribution businesses determine their networkRTI tariffs.

The Government remains committed to electricity tariff reform in Queensland. While the regulation and approval of network revenue is the responsibility of the AER, the Queensland Government is reviewing the costs associated with the electricity network, as this is something that should have occurred long ago. This Government recognises that network costs have increased excessively in the past six years, and understands that any increase in electricity prices places more pressure on Queenslanders.

As a priority, the Government has established an Interdepartmental Committee (IDC) to oversee these reforms. The scope of the IDC is broad, looking at all drivers of electricity prices including energy supply, network costs and retail competition. The IDC has also engaged an Independent Review Panel to provide recommendations in relation to the drivers of network costs. The IDC is due to provide a report to the Government in early 2013. The outcomes of this process will assist the Government to ensure that electricity in Queensland is delivered in the most cost-effective manner possible.

13-369 File B Documents Page 32 of 76 Sincerely

Jonathan (Jon) PC Black Director-General Department of Energy and Water Supply For the Minister for Energy and Water Supply PO Box 15456, City East Qld 4002 P: +61 7 3225 1612 F: +61 7 3033 0538 Customer Service Centre 13 25 23

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13-369 File B Documents Page 33 of 76 From: Energy and Water Supply Correspondence Sent: Friday, 1 February 2013 12:16 PM To: '[email protected]' CC: '[email protected]' Subject: CTS00384/13 Changes to Network Tariff 8300

Follow Up Flag: Follow up Flag Status: Flagged

CTS00384/13

To: Mr Trevor St Baker [email protected] Cc: [email protected]

Dear Mr St Baker

Re: Changes to Network Tariff 8300

Thank you for your email of 7 January 2013 about the Energex network tariff 8300.

As per my email to you of 4 January 2013, I reaffirm the Minister and I are concerned about the impact that increasing retail electricity prices are having on customers. That is why theDEWS Government is progressing with an ambitious energy sector reform process designed to put downward pressure- on electricity prices over the long term.

Also as per my previous correspondence, I acknowledge the changes made to the Energex network tariff 8300 for 2012-13 are significant. Energex has advised they are currently considering their network tariffs for 2013-14. Once developed, Energex’s network tariff structures and cost allocations must then be approved by the Australian Energy Regulator (AER). I recommend you continue to communicate your tariff concerns to both Energex and the AER.

I also acknowledge that network and retail electricity tariffs can be improved. A key part of the Government’s energy reform agenda is the development of a 30 Year Electricity Strategy (the Strategy). I cannot pre-empt the direction or focus of the Strategy, however, I wouldRELEASE expect that investigating ways to improve network and retail electricity tariffs (in order to for example, send accurate price signals to customers about the impact of their demand on the network) will form part of the Strategy.DL The development of the Strategy will involve extensive public consultation (which has commenced with the release of a Directions Paper in December 2012). I encourage you to participate in this consultation process, and the next opportunity stakeholders will have will be following the release of a Discussion Paper in the coming months. RTI More generally, and with regard to network tariffs for small business customers, I note there are many small businesses that are required to connect to the Energex network tariff 8300 because they consume more than 100 megawatt hours (MWh) per annum and are therefore categorised as large electricity customers. This categorisation is irrespective of their employee numbers, revenue or legal structure. In addition, with deregulation of the large electricity customer market in South-East Queensland from 1 July 2012, these customers cannot access regulated retail tariffs set by the Queensland Competition Authority.

Small businesses that consume less than 100 MWh per annum are considered small electricity customers and therefore do have access to the regulated prices as determined by the QCA. This means these customers have the choice of either a flat tariff (Tariff 20 – General Business Supply), a Time-of-Use tariff (Tariff 22 – Business General Supply – Time-of-Use), or a demand tariff (Tariff 41 – Business Low Voltage General Supply (Demand)). I recognise that businesses that are also small electricity customers wishing to access a demand tariff are limited to Tariff 41 (which is developed using the Energex network tariff 8300), and that this is not ideal for small customers due to the very high daily service fee that exists with Tariff 41. As such, and as you have pointed out, it is difficult

13-369 File B Documents Page 34 of 76 to encourage small customers away from the volumetric based tariffs such as Tariff 20.

I thank you for making these representations on behalf of small business customers, and again encourage you to participate in the consultation process for the Government’s 30 Year Electricity Strategy.

Sincerely

DEWS -

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13-369 File B Documents Page 35 of 76 From: Grandelis Raylene [[email protected]] Sent: Tuesday, 2 April 2013 11:23 AM To: Energy and Water Supply Correspondence Subject: FW: CTS04456/13 - Email response letter from the Office of the Minister for Energy and Water Supply

Categories: Purple Category

From: Elizabeth Lowdell [mailto:[email protected]] On Behalf Of Energy and Water Sent: Thursday, 28 March 2013 3:38 PM To: [email protected] Subject: CTS04456/13 - Email response letter from the Office of the Minister for Energy and Water Supply

Ref: EWS/002994 CTS04456/13

28 March 2013

To: Mr Trevor St Baker [email protected] DEWS - Dear Mr St Baker

Re: Electricity policy and electric vehicles

Thank you for your email of 29 January 2013 about the need for proactive policy consideration to facilitate and capture the benefits in the emerging electric vehicle market.

The Queensland Government has embarked onRELEASE an ambitious plan to develop a 30-Year Electricity Strategy that will look at all aspects of the electricity supply sector to identify opportunities and challenges. A key area of focus for the Strategy will be an examination of enabling and emerging technologies that are likely to transform the sector over the next 30 years. Electric vehiclesDL clearly fit into this category.

Accordingly I have forwarded the comments and news article you provided to the 30-Year Electricity Strategy team for consideration in the developmentRTI of a detailed Discussion Paper which I hope to release in mid 2013. Following the release of the Discussion Paper, I will be announcing an extended three month consultation period seeking input from Queensland households and industry regarding the future challenges and opportunities within the sector.

Stakeholder input will be fundamental in helping the Queensland Government develop an effective Strategy that achieves a shared vision for the electricity sector. As we move forward, I hope to continue working with engaged and informed stakeholders such as ERM Power Limited, to ensure we can best develop a strategy that will ensure our electricity supply system is cost effective, resilient and customer-focussed well into the future. I encourage ERM Power Limited to participate in this policy development process.

Yours sincerely

13-369 File B Documents Page 36 of 76

This email, together with any attachments, is intended for the named recipient(s) only; and may contain privileged and confidential information. If received in error, you are asked to inform the sender as quickly as possible and delete this email and any copies of this from your computer system network. If not an intended recipient of this email, you must not copy, distribute or take any action(s) that relies on it; any form of disclosure, modification, distribution and /or publication of this email is also prohibited. Unless stated otherwise, this email represents only the views of the sender and not the views of the Queensland Government. Please consider the environment before printing this email.

DEWS -

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13-369 File B Documents Page 37 of 76 From: Hatch Lorelle [[email protected]] Sent: Wednesday, 29 May 2013 4:40 PM To: '[email protected]' CC: ED QLD Gas Scheme; Whitelaw Alex Subject: Queensland Gas Scheme - Preliminary Assessment for the 2012 Liable Year - ERM Power Retail Pty Ltd

To: General Manager Trading

Dear Mr David Guiver

RE: Preliminary Assessment for ERM Retail Pty Ltd - 2012 Liable Year

Having reviewed the following material relevant to ERM Power Retail Pty Ltd (ERM Power Retail): · Queensland Gas Scheme Annual GEC Liability Self-Assessment Report for the 2012 liable year · supporting data for the Report, including ERM Power Retail AEMO Qld sales for 2012 and billing data for all Qld interval meter premises

We have made a preliminary assessment that the liability for the 2012 Liable Year for ERM Power Retail is 546,889 GECs. This is based on:

· Total electricity load of 4,434,116MWh DEWS · Exempt load of 788,185MWh - · Non-liable load of 0MWh · Total liable load of 3,645,931MWh

The Queensland Gas Scheme Registry indicates that 547,000 GECs have been offered for surrender by ERM Power Retail. 111 GECs will be returned to you if the final assessment remains the same. We do not expect this preliminary assessment to change however, assessments will not become final until we have reviewed the information for all liable parties, which will occurRELEASE before 30 June 2013. We will contact you if this preliminary assessment changes.

For our records, could you please reply to thisDL email confirming that you have received this preliminary assessment. A formal notification of your final assessment will be sent to you once all self-assessment reports have been reviewed.

Regards RTI

Lorelle Hatch Manager for Director-General

Industry Services and Emergency Response Generation and Fuel Department of Energy and Water Supply Level 5, 41 George Street, Brisbane Qld 4000 PO Box 15456, City East, Qld 4002 Phone: +61 7 340 48015 Short Dial: 18015 Mobile: s.49 Fax: +61 7 3238 3088

13-369 File B Documents Page 38 of 76 Email: [email protected]

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13-369 File B Documents Page 39 of 76 From: Jane Horwood [[email protected]] Sent: Thursday, 30 May 2013 9:02 AM To: Hatch Lorelle CC: ED QLD Gas Scheme; O'Connor Courtney Subject: RE: Queensland Gas Scheme - 2012 Liable Year - Preliminary Assessment Oakey Power Holdings Pty Ltd

Lorelle,

Thank you for this.

Regards Jane Horwood Settlements and Accounting Manager - Operations

ERM Power Limited Direct Phone: +61 7 3020 5196

Level 52, 111 Eagle St, Brisbane GPO Box 7152 Brisbane Queensland 4001 Australia DEWS Ph: +61 7 3020 5100 - Fax: +61 7 3220 6110 www.ermpower.com.au Untitled

This email has been sent by ERM Power Limited or a related entityRELEASE and it may contain confidential and privileged information. If you have accidently received this email do not use or share the information, notify the sender immediately by return email and delete all copies on your system. If this email contains personal information please handle that information with respect to the privacy of the individual and in accordance with the Privacy Act 1988. Note that emails may not be accurate representations as they canDL be interfered with. ERM Power Limited’s head office is at Level 52,111 Eagle St, Brisbane QLD 4000. Telephone contact details are +61 7 3020 5100, facsimile +61 7 3220 6110.

RTI

From: Hatch Lorelle [mailto:[email protected]] Sent: Wednesday, 29 May 2013 4:10 PM To: Jane Horwood Cc: ED QLD Gas Scheme; O'Connor Courtney Subject: Queensland Gas Scheme - 2012 Liable Year - Preliminary Assessment Oakey Power Holdings Pty Ltd

To: Settlements and Accounting Manager – Operations

Dear Ms Horwood

RE: Preliminary Assessment Report – Auxiliary Load Exemption for Oakey Power Station – 2012 Liable Year

Having reviewed the provided material relevant to Oakey Power Holdings Pty Ltd’s Exemption Compliance Report for the 2012 Liable Year for Auxiliary Load Exemption EXE/AUX/001/06, we have made a preliminary assessment that the exempt liable load for the Oakey Power Station is 2,719.7MWh. 13-369 File B Documents Page 40 of 76

Thank you for completing payment of the annual Exemption Renewal Fee.

We do not expect this assessment to change. However, assessments will not become final until we have reviewed all liable parties. This will occur by 30 June 2013.

For our records, please reply to this email to confirm you have received the above information.

Regards

Lorelle Hatch Manager for Director-General

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The information in this email together with any attachments is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. There is no waiver of any confidentiality/privilege by your inadvertent receipt of this material.

Any form of review, disclosure, modification, distribution and/or publication of this email message is prohibited, unless as a necessary part of Departmental business.

If you have received this message in error, you are asked to inform the sender as quickly as possible and delete this message and any copies of this message from your computer and/orRELEASE your computer system network. ------DL RTI

13-369 File B Documents Page 41 of 76 From: Jane Horwood [[email protected]] Sent: Thursday, 13 June 2013 11:29 AM To: Hatch Lorelle Subject: FW: Queensland Gas Scheme - 2012 Liable Year - Preliminary Assessment Oakey Power Holdings Pty Ltd

Hi Lorelle,

Confirmation as requested.

Regards Jane

From: Jane Horwood Sent: Thursday, 30 May 2013 9:02 AM To: 'Hatch Lorelle' Cc: ED QLD Gas Scheme; O'Connor Courtney Subject: RE: Queensland Gas Scheme - 2012 Liable Year - Preliminary Assessment Oakey Power Holdings Pty Ltd

Lorelle,

Thank you for this. DEWS Regards - Jane Horwood Settlements and Accounting Manager - Operations

ERM Power Limited Direct Phone: +61 7 3020 5196

Level 52, 111 Eagle St, Brisbane GPO Box 7152 RELEASE Brisbane Queensland 4001 Australia DL Ph: +61 7 3020 5100 Fax: +61 7 3220 6110 www.ermpower.com.au Untitled RTI

This email has been sent by ERM Power Limited or a related entity and it may contain confidential and privileged information. If you have accidently received this email do not use or share the information, notify the sender immediately by return email and delete all copies on your system. If this email contains personal information please handle that information with respect to the privacy of the individual and in accordance with the Privacy Act 1988. Note that emails may not be accurate representations as they can be interfered with. ERM Power Limited’s head office is at Level 52,111 Eagle St, Brisbane QLD 4000. Telephone contact details are +61 7 3020 5100, facsimile +61 7 3220 6110.

From: Hatch Lorelle [mailto:[email protected]] Sent: Wednesday, 29 May 2013 4:10 PM 13-369 File B Documents Page 42 of 76 To: Jane Horwood Cc: ED QLD Gas Scheme; O'Connor Courtney Subject: Queensland Gas Scheme - 2012 Liable Year - Preliminary Assessment Oakey Power Holdings Pty Ltd

To: Settlements and Accounting Manager – Operations

Dear Ms Horwood

RE: Preliminary Assessment Report – Auxiliary Load Exemption for Oakey Power Station – 2012 Liable Year

Thank you for completing payment of the annual Exemption Renewal Fee.

We do not expect this assessment to change. However, assessments will not become final until we have reviewed all liable parties. This will occur by 30 June 2013.

For our records, please reply to this email to confirm you have received the above information.

Regards

Lorelle Hatch DEWS Manager - for Director-General

Industry Services and Emergency Response Generation and Fuel Department of Energy and Water Supply Level 5, 41 George Street, Brisbane Qld 4000 PO Box 15456, City East, Qld 4002 RELEASE Phone: +61 7 340 48015 Short Dial: 18015 Mobile: s.49 Fax: +61 7 3238 3088 Email: [email protected] DL

------RTI The information in this email together with any attachments is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. There is no waiver of any confidentiality/privilege by your inadvertent receipt of this material.

Any form of review, disclosure, modification, distribution and/or publication of this email message is prohibited, unless as a necessary part of Departmental business.

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13-369 File B Documents Page 43 of 76 From: Jenna Polson [[email protected]] Sent: Tuesday, 9 July 2013 4:00 PM To: Hatch Lorelle Subject: RE: My New Contact Details

Hi Lorelle,

I’d like to take you up on your offer to arrange for me to be added as a user for the scheme registry. Please let me know if there’s any additional information you require.

Thanks,

Jenna Polson

From: Jenna Polson Sent: Monday, 24 June 2013 4:52 PM To: 'Hatch Lorelle' Subject: RE: My New Contact Details

Thank you.

I will be the primary compliance contact for reporting etc., but we’re still workingDEWS through whether it’s best for me to have a registry account. - I’ll let you know.

Jenna Polson Regulatory Manager

ERM Business Energy Direct: +61 3 9214 9347 Mobile s.49 RELEASE

Level 3, 90 Collins St, Melbourne VIC 3000 PO Box 18042, Collins St East VIC 8003DL Australia

Ph: +61 3 9214 9337 RTI Fax: +61 3 9935 9439 www.ermpower.com.au

From: Hatch Lorelle [mailto:[email protected]] Sent: Monday, 24 June 2013 4:49 PM To: Jenna Polson

13-369 File B Documents Page 44 of 76 Cc: ED QLD Gas Scheme Subject: RE: My New Contact Details

To: Regulatory Manager

Dear Ms Polson

Re: Queensland Gas Scheme Administration – Electricity Act 1994

Hi Jenna

Thank you for your contact details. I will note our files accordingly. Do you wish to be added as a user to the Queensland Gas Scheme Registry? If so, please let me know and I will make the necessary arrangements.

Regards

Lorelle Hatch Manager for Director-General

Industry Services and Emergency Response DEWS Generation and Fuel - Department of Energy and Water Supply Level 5, 41 George Street, Brisbane Qld 4000 PO Box 15456, City East, Qld 4002 Phone: +61 7 340 48015 Short Dial: 18015 Mobile: s.49 Fax: +61 7 3238 3088 Email: [email protected] RELEASE From: Jenna Polson [mailto:[email protected]] Sent: Monday, 24 June 2013 3:46 PM To: undisclosed-recipients DL Subject: My New Contact Details

Hi All, RTI

I have now started at ERM Power – please note my new contact details below.

Kind regards,

Jenna Polson Regulatory Manager

ERM Business Energy Direct: +61 3 9214 9347 Mobile: s.49

Level 3, 90 Collins St, Melbourne VIC 3000 PO Box 18042, Collins St East VIC 8003 Australia 13-369 File B Documents Page 45 of 76

Ph: +61 3 9214 9337 Fax: +61 3 9935 9439 www.ermpower.com.au

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Any form of review, disclosure, modification, distribution and/or publication of this email message is prohibited, unless as a necessary part of Departmental business.

RELEASE DL RTI

13-369 File B Documents Page 46 of 76 From: Wold Andrea [[email protected]] Sent: Friday, 9 August 2013 9:08 AM To: Walkington Julie CC: Hunter Virginia Subject: FW: Carbon and RET Statement on Electricity Accounts - ERM Power Retail Pty Ltd confirmation

Julie

Alan signed a letter to electricity retailers last week (refer CTS16772/13) asking that they confirm (via e-mail to me) that the approved carbon statement is being incorporated on their residential customer electricity invoices.

Please note letters were not sent to s.73 - Not relevant given we are currently working with both companies in respect of their non-compliance.

Going forward, can you please manage this process and provide Virginia and I with a weekly update (due COB each Friday) on:

· Which retailers have responded · Date of response · Details of the response (eg confirmation of compliance or otherwise) · List of retailers who are yet to respond. DEWS As each e-mail comes in, I will forward to you. -

Any questions, please come and talk to me.

Thank you

Andrea

RELEASE

Andrea Wold DL A/Director for Director-General RTI Energy Networks & Regulation Department of Energy and Water Supply Level 3, 41 George Street, Brisbane Qld 4000 PO Box 15465 City East Qld 4002 Phone: +61 7 3227 7564 Short Dial: 77564 Email: [email protected]

From: Phil Waren [mailto:[email protected]] Sent: Monday, 5 August 2013 9:20 AM To: Wold Andrea Cc: Fiona Simon Subject: Carbon and RET Statement on Electricity Accounts - ERM Power Retail Pty Ltd confirmation

13-369 File B Documents Page 47 of 76

Andrea

I refer to Alan Millis’ letter (Your ref: CTS16772/13) dated 1 August 2013 requiring confirmation that the approved Carbon and Renewable Energy Target Cost Statement for Residential Electricity Accounts is being incorporated on all residential electricity accounts.

I wish to advise that ERM Power Retail does not supply energy to residential customers in Queensland. We currently only service the Commercial and Industrial sector.

Please contact me if you have any questions.

Best regards

Phil Waren Senior Regulatory Manager

ERM Power Limited Direct: +61 3 9214 9324 Mobile: s.49

Level 3, 90 Collins St, Melbourne VIC 3000 DEWS PO Box 18042, Collins St East VIC 8003 - Australia

Phone: +61 3 9214 9300 Fax: +61 3 9663 2201 www.ermpower.com.au Description: Untitled RELEASE

DL This email has been sent by ERM Power Limited or a related entity and it may contain confidential and privileged information. If you have accidently received this email do not use or share the information, notify the sender immediately by return email and delete all copies on your system. If this email contains personal information please handle that information with respect to the privacy of the individual and in accordance with the Privacy Act 1988. Note that emails may not be accurate representationsRTI as they can be interfered with. ERM Power Limited’s head office is at Level 52,111 Eagle St, Brisbane QLD 4000. Telephone contact details are +61 7 3020 5100, facsimile +61 7 3220 6110.

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13-369 File B Documents Page 52 of 76 From: TAN Yewy [[email protected]] Sent: Thursday, 24 April 2014 9:25 AM To: O'BRIEN Lisa Subject: FW: Updated regulatory contact details for ERM Power - QLD (Dews)

From: Amanda Hirst [mailto:[email protected]] Sent: Wednesday, 5 June 2013 2:00 PM To: Howe Jo-Anne; Barr Benn; Parr Roslyn; Campbell Kris; [email protected]; Masnata Karen; Solar Bonus Scheme; Tan Yewy; Atkins Sarah; Taylor Ty Cc: [email protected] Subject: Updated regulatory contact details for ERM Power - QLD (Dews)

May I introduce Phil Waren, Senior Regulatory Manager.

Phil will be taking over my compliance duties going forward and is based in our Melbourne office, details below.

ERM Power Limited Direct: +61 3 9214 9324 DEWS Mobile: s.49 -

Level 3, 90 Collins St, Melbourne VIC 3000 PO Box 18042, Collins St East VIC 8003 Australia

Phone: +61 3 9214 9300 Fax: +61 3 9935 9439 www.ermpower.com.au Description: Description: Untitled RELEASE DL

RTI

Going forward, if you could please direct any regulatory and compliance correspondence to Phil via the email distribution group below. Any letters should be addressed to Phil at the Melbourne address provided or to the CEO’s address below if applicable. [email protected]

Just confirming that our CEO is still Mitch Anderson and ERM Powers head office postal address is

GPO Box 7152 Brisbane QLD 4001

Phil will be in touch in due course to discuss our obligations with a view to ensuring we continue to meet them. 13-369 File B Documents Page 53 of 76

Regards

Amanda Hirst Billing & Transfers Manager

ERM Business Energy Direct Phone: +61 7 3020 5188 Mobile: s.49

Level 52, 111 Eagle St, Brisbane GPO Box 7152 Brisbane Queensland 4001 Australia

Ph: 61 7 3020 5100 Fax: 61 7 3221 2963 www.ermpower.com.au

This email has been sent by ERM Power Limited or a related entity and it may contain confidential andDEWS privileged information. If you have accidently received this email do not use or share the information, notify the sender immediately by return email and delete all copies on your system. If this email contains personal information please handle that information with respect to the privacy of the individual and- in accordance with the Privacy Act 1988. Note that emails may not be accurate representations as they can be interfered with. ERM Power Limited’s head office is at Level 111 Eagle Street, Brisbane QLD 4001. Telephone contact details are +61 7 3020 5100, facsimile +61 7 3020 5111.

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13-369 File B Documents Page 54 of 76 From: O'connor, Courtney Sent: Friday, 25 May 2012 9:29 PM To: Energy and Water Supply Correspondence Subject: Meeting brief requests

Follow Up Flag: Follow up Flag Status: Green Hey guys

I have a heap of meeting requests that need to be processed. Thanks so much for your assistance J

I figured if I put it in a table, you could send me back the doctrak numbers all at once? Hopefully this is easier then one at a time…

Only one is super urgent – highlighted in yellow.

Date and Organisation/Company Attendees Topics/ Issues Allocate to Date Doctrak time of brief reference meeting required

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12 June ERM Power and Trevor StRELEASEERM Power and Energy 5 June 2012 SAS Group Baker, Non- electricity Policy 2012 4- Executive industry issues 4:30pm DirectorDL and including Deputy demand-side Chairman and response and RTIfounder, ERM ERM’s retail Power model in the Philip St deregulated Baker, customer space. Managing Director, ERM Power Peter Constantini, SAS Group Jon Black, DG

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Cheers,

Courtney O'Connor Department Liaison Officer Department of Energy and Water Supply

Phone: 3896 3689 Level 13, 41 George Street PO BOX 15216, CITY EAST QLD 4002

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13-369 File B Documents Page 68 ofReleased 76 Author Branch Approval Division Approval Jon Black Name: David Wright Name: Benn Barr Name: Karen Masnata Director-General Position: Principal Policy General Manager DDG DEWS Officer Branch: Energy Sector Division: Energy Telephone: 3006 2390 Section: Energy Sector Reform Tel No: 3239 0039 Date Endorsed: Reform Tel No: 3225 8305 Date Endorsed: 4/12/12 Tel No: 3224 2459 Date Endorsed:4/12/12 Re-endorsed 12/12/12 Date drafted: 23 Nov 12 Re-endorsed: 12/12/12 Endorsed 29/11/12 Re-drafted 7/12/12

MC11807

To: Mr Trevor St Baker [email protected] Cc: Honourable Mark McArdle MP, Minister for Energy and Water Supply, Member for Caloundra

Dear Mr St Baker

Re: Changes to Network Tariff 8300

Thank you forI refer to your email of 4 November 2012 about changes to electricity network tariffs for businesses and specifically those on network tariff code 8300. Your email was forwarded to me by the Honourable Mark McArdle MP, Minister for Energy and Water Supply, Member for Caloundra, for direct reply. DEWS The Minister and I are concerned about how changes to Energex’s- 2012-13 network tariffs have impacted on some Queensland businesses. We have spoken with Energex who has acknowledged that some customers are facing significant price increases, and that in some instances the changes and impacts were not adequately communicated to all customers. It is my understanding that Energex has been in contact with retailers and the worst affected customers and provided advice on how to mitigate the increase associated with the changes to network tariffs in 2012-13.

As network tariff pricing proposals are considered by the Australian Energy Regulator (AER) annually, there will be the opportunityRELEASE for Energex to review the network charges associated with the network tariff 8300 and submit these to the AER in its 2013-14 network pricing proposal. Energex have advisedDL that they are giving careful consideration to the development of their network tariffs for large customers for 2013-14. I therefore encourage you to work with Energex to communicate your concerns and the issues affecting your customers. RTI The significant increase for the network tariff 8300 resulted from several factors. Energex rationalised three network tariffs that existed in 2011-12 (small - 8300, medium - 8200 and large - 8100) into two tariffs for 2012-13 (8300 and 8100), meaning that the medium demand customers transitioned on to the new small and large demand tariffs. I am advised that Energex structured these charges consistent with the National Electricity Rules (NER). Ultimately the effect of this has been to increase the fixed daily service charge for customers on network tariff 8300 significantly. I acknowledge your point that because the increase is related to the fixed charge, there is little incentive or ability for the customer to improve their load factor or implement demand side management in order to lower their bill.

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Furthermore, a number of customers moved from ‘energy only’ regulated retail tariffs, where they were charged mostly on a volumetric basis (such as regulated retail tariffs Tariff 20 or Tariff 22), to demand based tariffs. In some cases this was as a result of customers being reclassified from small to large. In addition, the deregulation of the large customer market in South East Queensland (SEQ) meant that some customers, for the first time, experienced a full pass-through of the Energex network charge (meaning some customers were charged on the basis of demand for the first time). I understand that it was these customers (i.e. who moved from volumetric based tariffs to demand based tariffs) that have been most adversely affected in terms of increased electricity bills, and Energex has advised that it has worked hard to find solutions for these customers in 2012-13. Furthermore, many of these customers have reported that the above mentioned changes were not adequately communicated to them. This highlights the need for strong customer engagement and public communication following any change to Government policy, or to the way distribution businesses determine their network tariffs.

As a priority, the Government has established an InterdepartmentalDEWS Committee (IDC) to oversee these reforms. The scope of the IDC is broad, looking- at all drivers of electricity prices including energy supply, network costs and retail competition. The IDC has also engaged an Independent Review Panel to provide recommendations in relation to the drivers of network costs. The IDC is due to provide a report to the Government in early 2013. The outcomes of this process will assist the Government to ensure that electricity in Queensland is delivered in the most cost-effective manner possible.

Sincerely

Jonathan (Jon) PC Black RELEASE Director-General Department of Energy and WaterDL Supply For the Minister for Energy and Water Supply PO Box 15456, City East Qld 4002 P: +61 7 3225 1612 F: +61 7 3033 0538 Customer Service CentreRTI 13 25 23

13-369 File B Documents Page 70 of 76 From: Energy and Water Supply Correspondence Sent: Friday, 4 January 2013 3:20 PM To: '[email protected]' Cc: '[email protected]' Subject: MC11807 Correspondence from the Department of Energy and Water Supply MC11807

To: Mr Trevor St Baker [email protected] Cc: Honourable Mark McArdle MP, Minister for Energy and Water Supply, Member for Caloundra

Dear Mr St Baker

Re: Changes to Network Tariff 8300

The Minister and I are concerned about how changes to Energex’s 2012-13 network tariffs have impacted on some Queensland businesses. We have spoken with Energex who has acknowledged that some customers are facing significant price increases, and that in some instancesDEWS the changes and impacts were not adequately communicated to all customers. It is my understanding- that Energex has been in contact with retailers and the worst affected customers and provided advice on how to mitigate the increase associated with the changes to network tariffs in 2012-13.

As network tariff pricing proposals are considered by the Australian Energy Regulator (AER) annually, there will be the opportunity for Energex to review the network charges associated with the network tariff 8300 and submit these to the AER in its 2013-14 network pricing proposal. Energex have advised that they are giving careful consideration to the development of their network tariffs for large customers for 2013-14. I therefore encourage you to work with Energex to RELEASEcommunicate your concerns and the issues affecting your customers.

The significant increase for the networkDL tariff 8300 resulted from several factors. Energex rationalised three network tariffs that existed in 2011-12 (small - 8300, medium - 8200 and large - 8100) into two tariffs for 2012-13 (8300 and 8100), meaning that the medium demand customers transitioned on to the new small and large demand tariffs. I am advisedRTI that Energex structured these charges consistent with the National Electricity Rules (NER). Ultimately the effect of this has been to increase the fixed daily service charge for customers on network tariff 8300 significantly. I acknowledge your point that because the increase is related to the fixed charge, there is little incentive or ability for the customer to improve their load factor or implement demand side management in order to lower their bill.

Furthermore, a number of customers moved from ‘energy only’ regulated retail tariffs, where they were charged mostly on a volumetric basis (such as regulated retail tariffs Tariff 20 or Tariff 22), to demand based tariffs. In some cases this was as a result of customers being reclassified from small to large. In addition, the deregulation of the large customer market in South East Queensland (SEQ) meant that some customers, for the first time, experienced a full pass-through of the Energex network charge (meaning some customers were charged on the basis of demand for the first time). I understand that it was these customers (i.e. who moved from volumetric based tariffs to demand based tariffs) that have been most adversely affected in terms of increased electricity bills, and Energex has advised that it has worked hard to find solutions for these customers in 2012-13. Furthermore, many of these customers have reported that the above mentioned 13-369 File B Documents Page 71 of 76 changes were not adequately communicated to them. This highlights the need for strong customer engagement and public communication following any change to Government policy, or to the way distribution businesses determine their network tariffs.

Sincerely

Jonathan (Jon) PC Black Director-General Department of Energy and Water Supply DEWS For the Minister for Energy and Water Supply - PO Box 15456, City East Qld 4002 P: +61 7 3225 1612 F: +61 7 3033 0538 Customer Service Centre 13 25 23

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