DOCSLIB.ORG

ASX Statement

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
ASX Statement AGL Energy Limited Level 22, 101 Miller St Locked Bag 1837 T: 02 9921 2999 ABN: 74 115 061 375 North Sydney NSW 2060 St Leonards NSW 2065 F: 02 9921 2552 www.agl.com.au ASX statement 17 September 2010 AGL Energy Limited is about to commence dispatch of its Annual Report 2010 and the Notice of Meeting in respect of the Annual General Meeting to be held on 21 October 2010. A copy of each of these documents has been lodged with the ASX today. Paul McWilliams Company Secretary 1 outside back cover outside front cover AGL Annual Report 2010 Energy Annual ® Report in action. 2010 inside front cover inside back cover Contents Introductory pages 1 Divisional highlights 2 Group highlights 3 Our integrated strategy 4 Achievements toward strategies and objectives 5 Chairman’s Report 6 Managing Director’s Report 8 Leadership in sustainable business 10 Our customers 11 Major power generation and upstream gas assets 12 Retail Energy 14 Merchant Energy 16 Investments 19 Upstream Gas 20 Leadership team 22 Corporate Governance 24 Reporting contents 33 AGL Financial Calendar AGL Energy Limited ABN 74 115 061 375 26 August 2010 2010 full year result and final dividend announced Annual General Meeting 10 September 2010 Record date for 2010 final dividend AGL’s Annual General Meeting will be held 30 September 2010 Final dividend payable at the City Recital Hall, 21 October 2010 Annual General Meeting Angel Place, Sydney 17 February 20111 2011 interim result and commencing at interim dividend announced 10.30am on Thursday 10 March 20111 Record date for 2011 interim dividend 21 October 2010. 31 March 20111 Interim dividend payable Front cover AGL employee Matthew 1 Indicative dates only, subject to change/Board confirmation. Arnott at AGL’s 140 MW Bogong Power Station in Victoria. AGL has major investments in the supply of gas and electricity, and is currently servicing more than 3.2 million customer accounts across New South Wales, Victoria, Queensland and South Australia. AGL Energy Limited (AGL) is Australia’s leading integrated renewable energy company and is Australia’s largest private owner, operator and developer of renewable generation assets. AGL is taking action towards creating a sustainable energy future for our customers, our investors and the communities in which we operate. The Australian Gas Light Company (old AGL) was formed in Sydney in 1837. It supplied gas for the first public lighting of a street lamp in Sydney in 1841 and was the second company to be listed on the then Sydney Stock Exchange. On 6 October 2006, old AGL and Alinta Limited shareholders approved the merger of old AGL’s infrastructure assets with Alinta and the subsequent separation of AGL. This was subsequently approved by the Federal Court of Australia on 9 October 2006. AGL began trading on the Australian Securities Exchange on 12 October 2006. AGL is one of Australia’s top 50 listed companies. Divisional highlights AGL’s Retail Energy business delivered strong growth in operating EBIT while the Merchant Energy business performed well in mild market conditions. Retail Energy Merchant Energy Upstream Gas – Gross margin up $71.0 million – Mild winter conditions – Focus for the year was driven by improved regulatory reduced volumes and on exploration activities and contract outcomes and wholesale gross margin to increase gas reserves. from the acquisition of higher and milder summer – Proved plus probable (2P) value customers. conditions in South Australia gas reserves at 30 June – Operating efficiency continued and Victoria reduced the 2010 up to 1,578 PJ. benefit from AGL’s generation to improve, with net operating – Gas sales volumes from and hedge portfolio. costs as a percentage of ongoing operations increased gross margin falling from – Fees from AGL’s wind farm 34 percent to 13.7 PJ. 52.4 percent to 49.5 percent. developments continued to – Decrease in operating EBIT provide strong returns with – Customer accounts increased was due mainly to the sale a contribution of $57.0 million. by 45,000 and dual fuel of the Papua New Guinea customer accounts increased business in the previous year. to 1.36 million. $318.7m $386.1m $5.5m Operating EBIT Operating EBIT Operating EBIT ($million) ($million) ($million) 402.8402.8 402.8 318.7318.7 318.7 386.1386.1 386.1 102.1102.1 102.1 271.7271.7266.8271.7266.8 266.8 331.4331.4 331.4 5.5 5.5 5.5 29.9 29.9 29.9 20102010 2010 20082020080920200820091020200910 2010 20082020080920200820091020200910 2010 20082020080920200809 2009 2 Group highlights AGL’s Underlying Profit increased by 13.2%. 30 June 30 June 30 June 2010 2009 2008 $m $m $m Profit after tax from continuing operations 356.1 718.2 316.3 Profit/(loss) after tax from discontinued operations – 877.9 (87.3) Profit after tax attributable to shareholders 356.1 1,596.1 229.0 Adjust for the following after tax items: Significant items (49.9) (1,441.3) (62.6) Changes in fair value of financial instruments 122.7 251.0 184.6 Pro-forma adjustment – (27.0) (10.0) Underlying Profit 428.9 378.8 341.0 Increase in Underlying Profit 13.2% 11.1% 4.7% $428.9m Underlying Profit +13.2% from 2009 $789.6m $428.9m 95.6 cents 1.0 LTIFR Operating EBITDA Underlying Profit EPS – underlying Our Lost Time Injury ($million) ($million) (cents) Frequency Rate (LTIFR) fell again this year, Divested reflecting the ongoing EBITDA importance we attach Continuing EBITDA to employee safety 63.4 209.0 63.4209.0 209.0 63.4 428.9 428.9 3.6 428.9 95.6 95.6 3.6 95.6 3.6 789.6 789.6 789.6 729.7 729.7 729.7 378.8 378.8 378.8 85.0 85.0 85.0 341.0 341.0 341.0 78.3 78.3 78.3 662.8 662.8 662.8 2.5 2.5 2.5 1.0 1.0 1.0 2008 2009200820102009200820102009 20102008 2009200820102009200820102020090820201009200820102009200820102009200820102020090820201009 2010 2008 2009 2010 3 Our integrated strategy AGL’s integrated strategy provides access to multiple profit pools and balances risk between upstream supply of energy and our customers’ demand for energy. Upstream supply (core) Gas Production Renewable Generation Thermal Generation Transmission (non-core) Gas Electricity Distribution (non-core) Gas Electricity Retail markets (core) Gas Renewables Electricity Upstream supply Customer energy demand – Maintain our position as – Focus on managing and Australia’s largest private growing margins. owner and operator of – Use our customer base to renewable energy assets by leverage our upstream continuing to develop our supply strategy to achieve existing pipeline of projects. economies of scale. – Increase direct ownership – Use the benefits from our of gas to 2,000 PJ (2P) over Project Phoenix to provide the medium term. our customers with improved – Increase ownership or control service and more options for of electricity generation managing their energy needs. capacity to 6,000 MW. 4 Achievements toward strategies and objectives We said we would deliver Our actual Underlying Profit for the year was $428.9 million, an increase Underlying Profit of between of 13.2 percent on last year. $390 million and $420 million We said we would increase Our ownership of 2P gas reserves has increased during the year from 1,107 PJ our direct ownership of to 1,578 PJ – an increase of 43 percent. gas reserves We said we would increase Our ownership or control of electricity generation assets increased from 3,517.7 MW to 3,756.5 MW, our ownership or control of with the commissioning during the year of the electricity generation assets new 140 MW Bogong Power Station, the and maintain our position as 71 MW Hallett 2 Wind Farm and other generation assets. We also commenced construction of the Australia’s leading integrated 132 MW Hallett 4 Wind Farm and announced renewable energy company our commitment to construct a 67 MW wind farm at Oakland Hills in western Victoria. New long-term contracts to supply renewable energy to the Victorian Desalination Plant, the Adelaide Desalination Plant, and Melbourne Water Corporation have made AGL Australia’s largest seller of renewable energy. We said we would profitably Our customer accounts increased by 45,000 with our operating costs as a proportion of grow our customer base EBIT falling from 52.4 percent to 49.5 percent. and improve our level of Complaints to State Ombudsmans’ offices customer service fell from 76 per 10,000 customers to 48 per 10,000 customers. We said we would continue Our Lost Time Injury Frequency Rate to improve the safety of fell from 2.5 to 1.0. our employees 5 Chairman’s Report We are confident that we have the people and the processes in place to provide the service our customers expect, and to deliver the returns our shareholders expect. Mark Johnson Chairman AGL’s strategy is founded on providing reliable, low emission energy The financial results also include, as a significant item, an supplies and high levels of service, to all our customers. Pursuing entitlement to a refund of income tax of approximately $89 million. this strategy involves improving every aspect of our service Amendments to the income tax law in June 2010 allow AGL to and expanding our portfolio of energy sources within a carbon correct an anomaly in the application of the tax consolidation rules constrained world. to the merger/demerger transaction with Alinta Limited in October 2006, and we expect to receive the cash refund during FY11. The We continue to maintain a strong financial position which allows us tax refund will be sufficient, for example, to fund AGL’s acquisition to participate in national energy markets.
Load more

Recommended publications
  • Financial Services Guide and Independent Expert's Report
    15 September 2008 Manager Companies ASX Limited 20 Bridge Street SYDNEY NSW 200 Dear Sir INDEPENDENT EXPERT'S REPORT Attached herewith for immediate release to the market is the Independent Expert’s Report of Grant Samuel dated 15 September 2008. The report will be available today on the Origin Energy website on: www.originenergy.com.au/media/newsroom. Printed copies of the report may be requested by contacting our shareholder information line 1800 647 819. Yours faithfully Bill Hundy Company Secretary 02 8345 5467 - [email protected] For personal use only Origin Energy Limited ABN 30 000 051 696 • Level 45, Australia Square, 264-278 George Street Sydney NSW 2000 GPO Box 5376, Sydney NSW 2001 • Telephone (02) 8345 5000 • Facsimile (02) 9252 9244 • www.originenergy.com.au GRANT SAMUEL & ASSOCIATES LEVEL 19 GOVERNOR MACQUARIE TOWER 1 FARRER PLACE SYDNEY NSW 2000 GPO BOX 4301 SYDNEY NSW 2001 15 September 2008 T: +61 2 9324 4211 / F: +61 2 9324 4301 www.grantsamuel.com.au The Directors Origin Energy Limited Level 45, Australia Square 264-278 George Street Sydney NSW 2000 Dear Directors ConocoPhillips Proposal 1 Introduction On 8 September 2008, Origin Energy Limited (“Origin”) announced that it had entered conditional agreements with a wholly owned subsidiary of ConocoPhillips (“ConocoPhillips”) to create an incorporated 50/50 joint venture (“JV”) to develop Origin’s coal seam gas (“CSG”) assets and a gas liquefaction facility (“the ConocoPhillips Proposal”). The key features of the ConocoPhillips Proposal are: ConocoPhillips will subscribe for new partly paid shares in Origin Energy CSG Limited (“OECSG”) which will comprise 50% of the enlarged share capital.
    [Show full text]
  • Winds of Change: an Analysis of Recent Changes In
    Winds of change An analysis of recent changes in the South Australian electricity market McConnell & Sandiford August 2016 About the Melbourne Energy Institute The Melbourne Energy Institute brings together the work of over 150 researchers, across seven faculties at The University of Melbourne , providing international leadership in energy research and delivering solutions to meet our future energy needs. By bringing together discipline-based research strengths and by engaging with stakeholders outside the University, the Institute offers the critical capacity to rethink the way we generate, deliver and use energy. The Institute presents research opportunities in bioenergy, solar, wind, geothermal, nu- clear, fuel cells and carbon capture and storage. It also engages in energy efficiency for urban planning, architecture, transport and distributed systems, and reliable energy transmission. Economic and policy questions constitute a significant plank of the Institutes research pro- gram and include: market regulation and demand; carbon trading; energy system modelling; climate change feed backs; and social justice implications of energy policy. Acknowledgments The Melbourne Energy Institute acknowledges the Australian Conservation Foundation (ACF) and the Australian-German Climate & Energy College for their support of this research. The authors would also like to thank the reviewers for their helpful comments. Winds of Change - an analysis of recent changes in the South Australian electricity mar- ket is licensed CC BY 3.0 AU. doi:10.4225/49/57A0A5C1373F9
    [Show full text]
  • Report Title
    ISSN 1835-9728 Environmental Economics Research Hub Research Reports The Integration of Wind Generation within the South Australian Region of the Australia National Electricity Market Nicholas Cutler, Iain MacGill and Hugh Outhred Research Report No. 38 November 10 2009 About the authors Nicholas Cutler is a research associate in School of Electrical Engineering and Telecommunications at the University of New South Wales, Sydney, Australia. His research interests include integrating renewable energy into power systems, specifically wind power and wind power forecasting. [email protected] +61 2 9385 4061 Hugh Outhred is a Professorial Visiting Fellow in the School of Electrical Engineering and Telecommunications at the University of New South Wales, Sydney. His research interests are in the areas of energy industry restructuring, energy economics, demand management, and renewable energy. [email protected] +61 2 9385 4035 Dr Iain MacGill is a Senior Lecturer in the School of Electrical Engineering and Telecommunications at the University of New South Wales, and Joint Director (Engineering) for the University’s Centre for Energy and Environmental Markets (CEEM). Iain’s teaching and research interests include electricity industry restructuring and the Australian National Electricity Market, sustainable energy technologies, distributed energy systems, energy policy and environmental regulation. CEEM itself undertakes interdisciplinary research in the monitoring, analysis and design of energy and environmental markets and their associated policy frameworks. To learn more about CEEM and its work, visit the centre website at – www.ceem.unsw.edu.au [email protected] +61 2 9385 4092 Environmental Economics Research Hub Research Reports are published by The Crawford School of Economics and Government, Australian National University, Canberra 0200 Australia.
    [Show full text]
  • ESSENTIAL SERVICES COMMISSION Level 37 2 Lonsdale Street Melbourne Victoria 3000 ABN: 71 165 498 668
    2015–16 ANNUAL REPORT CONTACT DETAILS ESSENTIAL SERVICES COMMISSION Level 37 2 Lonsdale Street Melbourne Victoria 3000 ABN: 71 165 498 668 Telephone 61 3 9032 1300 or 1300 664 969 Email [email protected] Website esc.vic.gov.au BUSINESS HOURS 8.30am to 5pm Monday to Friday CHAIRPERSON Dr Ron Ben-David COMMISSIONERS Richard Clarke Julie Abramson SENIOR STAFF Chief Executive Officer David Heeps (left 19 February 2016) John Hamill (started 16 February 2016) (Acting) Director, Transport Dominic L’Huillier Director, Water Marcus Crudden Director, Energy Targets Jeff Cefai Director, Energy David Young Director, Local Government Andrew Chow Director Corporate & Legal Counsel John Henry ISSN: 1447-6029 © 2016 Essential Services Commission This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968 and the permission of the Essential Services Commission. 1 OUR VALUES INTEGRITY • Being transparent and consistent in making decisions • Explaining clearly the rationale behind decisions • Acting openly and honestly COLLABORATION • Sharing information and knowledge across the organisation • Adopting an open and constructive approach to addressing and resolving issues with stakeholders • Providing or taking opportunities across the organisation to jointly deliver influential outcomes IMPARTIALITY • Basing advice and decisions on merit, without bias, caprice, favouritism or self-interest • Acting fairly by objectively considering all relevant facts and fair criteria EXCELLENCE
    [Show full text]
  • 2021 2020 2020 Infrastructure Infrastructure for the Future for the Future
    ANNUAL REPORT 2020 INFRASTRUCTURE FOR THE FUTURE For personal use only Spark Infrastructure’s 2020 Annual Report describes how we have created value over the year through our investments in essential energy infrastructure. As a long-term investor, we aim to generate sustainable returns for Securityholders while delivering positive outcomes for our customers, our people, and the communities where we operate. For personal use only CONTENTS Our 2020 Annual Report describes our performance according to key stakeholder outcomes. It includes our Directors’ Report and Financial Report. Securityholders Customers Our people, Innovation and Environment p16 and community health and safety technology p36 p24 p28 p32 Spark Infrastructure at a glance 2 Governance 40 Chair’s message 6 Board of Directors 42 Managing Director’s message 8 Management team 43 How we create value 10 Annual Financial Report Performance outcomes (including Directors’ report) 44 Creating value for Securityholders 16 Additional ASX disclosures 124 Partnering with customers and community 24 Glossary of terms 126 Supporting our people 28 Contact information 127 Leading through innovation and technology 32 Five-year performance summary 128 Acting on environmental risks and opportunities 36 For personal use only AGM DETAILS 2020 REPORTING SUITE Annual General Meeting ANNUAL REPORT CORPORATE GOVERNANCE STATEMENT 11:30am, Thursday, 27 May 2021 2020 2020 INFRASTRUCTURE INFRASTRUCTURE FOR THE FUTURE FOR THE FUTURE Further details about the AGM can SUSTAINABILITY DATA REPORT 2020INFRASTRUCTURE
    [Show full text]
  • Minutes – Gwcf
    MINUTES – GWCF MEETING: Gas Wholesale Consultative Forum DATE: Tuesday, 11 November 2014 TIME: 10am – 12.30pm LOCATION: Melbourne, Sydney, Adelaide, MEETING #: 4 ATTENDEES: COMPANY COMPANY AEMC Gas Trading AEMO GDF SUEZ AER Hydro Tasmania AGL Jemena APA Lumo Click Energy M2 Energy COVA U Pty Ltd Major Energy Users Association Energy Australia Origin Epic Energy SEAGas 1. Apologies Apologies noted were from participants at Jemena. 2. Confirm agenda The agenda was confirmed with no amendments. 3. Minutes of previous meeting The GWCF and STTM confirmed the minutes of meeting number 3 held on 12 August 2014 with no amendments. Origin noted that action item 3.4 – Gas Market Prudentials – AEMO to present a draft plan of work – was moving slowly. AEMO responded that this was due to resourcing issues and that a timeline of work will be presented to the forum early in the New Year. APA noted that action item 1.2 – Directional Flow Point Constraint Pricing – provide further work examples and scenarios - is still pending. AEMO responded that this is to go on the forward plan pending on the Application of Constraints in the DWGM issue. 4. Items for discussion or Noting 4.1 AEMO spoke to the forum regarding the Victorian gas industry emergency activation that occurred on 5 November 2014. This was due to the activation of the slam shut valves at the Wollert city gate during the pigging of the Wollert to Keon Park Pipeline. A contingency plan that was put in place with AusNet Services (who were on standby) to reopen a network valve was activated.
    [Show full text]
  • The Calculation of Energy Costs in the BRCI for 2010-11
    The calculation of energy costs in the BRCI for 2010-11 Includes the calculation of LRMC, energy purchase costs, and other energy costs Prepared for the Queensland Competition Authority Draft Report of 14 December 2009 Reliance and Disclaimer In conducting the analysis in this report ACIL Tasman has endeavoured to use what it considers is the best information available at the date of publication, including information supplied by the addressee. Unless stated otherwise, ACIL Tasman does not warrant the accuracy of any forecast or prediction in the report. Although ACIL Tasman exercises reasonable care when making forecasts or predictions, factors in the process, such as future market behaviour, are inherently uncertain and cannot be forecast or predicted reliably. ACIL Tasman Pty Ltd ABN 68 102 652 148 Internet www.aciltasman.com.au Melbourne (Head Office) Brisbane Canberra Level 6, 224-236 Queen Street Level 15, 127 Creek Street Level 1, 33 Ainslie Place Melbourne VIC 3000 Brisbane QLD 4000 Canberra City ACT 2600 Telephone (+61 3) 9604 4400 GPO Box 32 GPO Box 1322 Facsimile (+61 3) 9600 3155 Brisbane QLD 4001 Canberra ACT 2601 Email [email protected] Telephone (+61 7) 3009 8700 Telephone (+61 2) 6103 8200 Facsimile (+61 7) 3009 8799 Facsimile (+61 2) 6103 8233 Email [email protected] Email [email protected] Darwin Suite G1, Paspalis Centrepoint 48-50 Smith Street Darwin NT 0800 Perth Sydney GPO Box 908 Centa Building C2, 118 Railway Street PO Box 1554 Darwin NT 0801 West Perth WA 6005 Double Bay NSW 1360 Telephone
    [Show full text]
  • 2016 South Australian Electricity Report
    SOUTH AUSTRALIAN ELECTRICITY REPORT SOUTH AUSTRALIAN ADVISORY FUNCTIONS Published: August 2016 SOUTH AUSTRALIAN ELECTRICITY REPORT IMPORTANT NOTICE Purpose The purpose of this publication is to provide information about South Australia’s electricity supply and demand. While some historic price information is provided for completeness, this publication does not present any views on the effectiveness of price signals in the National Electricity Market. AEMO publishes this South Australian Electricity Report in accordance with its additional advisory functions under section 50B of the National Electricity Law. This publication is based on information available to AEMO as at 1 July 2016, although AEMO has endeavoured to incorporate more recent information where practical. Disclaimer AEMO has made every effort to ensure the quality of the information in this publication but cannot guarantee that information, forecasts and assumptions are accurate, complete or appropriate for your circumstances. This publication does not include all of the information that an investor, participant or potential participant in the South Australian electricity market might require, and does not amount to a recommendation of any investment. Anyone proposing to use the information in this publication (including information and reports from third parties) should independently verify and check its accuracy, completeness and suitability for purpose, and obtain independent and specific advice from appropriate experts. Accordingly, to the maximum extent permitted by law, AEMO and its officers, employees and consultants involved in the preparation of this publication: make no representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of the information in this publication; and are not liable (whether by reason of negligence or otherwise) for any statements, opinions, information or other matters contained in or derived from this publication, or any omissions from it, or in respect of a person’s use of the information in this publication.
    [Show full text]
  • A South Australia's Electricity and Gas Industries
    A South Australia's Electricity and Gas Industries Both the electricity and gas industries in South Australia have undergone a range of significant reforms over the last fifteen years, commencing with the vertical disaggregation of the electricity and gas supply chains in the mid-1990s and culminating with the introduction of FRC for customers of all sizes during 2003-04. In the wake of FRC, gas and electricity retailing in South Australia has moved from a single host retailer model to a multiple retailer model. The remainder of this appendix provides both an historic perspective on the reforms that were undertaken in advance of the introduction of FRC and an overview of the current structure of energy retailing. A.1. Progression to FRC A.1.1. Electricity industry progression to FRC Between 1946 and 1995, the Electricity Trust of South Australia (ETSA) was responsible for undertaking all aspects of the electricity supply chain in South Australia including the generation, transmission, distribution and retail sale of electricity. On 1 July 1995, the Electricity Trust of South Australia was corporatised and became ETSA Corporation under the Public Corporations Act 1993. In January 1997 the South Australian Government undertook the first steps towards vertical disaggregation, by transferring ETSA’s generation assets to SA Generation Corporation. The second step toward vertical disaggregation occurred in October 1998 when the South Australian Government announced that, in order to meet its commitments under the Competition Principles Agreement and in preparation for entry into the NEM, ETSA Corporation and SA Generation Corporation would need to be further disaggregated.
    [Show full text]
  • Distributed Energy
    NEWS OFFICIAL JOURNAL OF THE AUSTRALIAN INSTITUTE OF ENERGY ENERGYwww.aie.org.au V O LUME 37 NO 4 – D Distributed Energy EC 2019 Microgrids, renewables, storage AEMO, EPWA, IMA, Western Power, Planet Ark PODCASTS McKinsey – How to unlock marketing-led politics and geopolitics, and how incumbents will have to growth: Data, creativity, and credibility navigate the new reality of climate change: tinyurl.com/ wcarhc8 McKinsey senior expert Biljana Cvetanovski and partner Jason Heller discuss the next chapter of marketing, which Oxford Institute for Energy Studies –The is focused on digital, and the role of the chief marketing limit of auctions in electricity systems officer (CMO) as the architect of a company’s growth engine: tinyurl.com/y3jjfh7p OIES senior research fellows Anupama Sen, Malcolm Keay and David Robinson discuss the role of central Energy Insiders – Ross Garnaut and why purchaser auctions for long-term commitments in Australia can be renewable superpower electricity systems and whether they are a useful market- based tool to complement other methods of resource RenewEconomy’s Giles Parkinson is joined by leading development: tinyurl.com/u2dxm6d economist and climate change policy expert Professor Ross Garnaut who explains how Australia can reach BloombergNEF Switched On – Solar 100% renewables in little more than a decade, and then thermal: all night long go further and become a renewable superpower: tinyurl. com/pvl9uwwr Jenny Chase, head of solar analysis for BloombergNEF, proposes how solar thermal for electricity generation
    [Show full text]
  • Snowy Hydro and Market Concentration
    Snowy hydro and market concentration November 2019 Snowy hydro currently has a dominant position in the peak generation and the related cap contract market segment of the National Electricity Market (NEM). When analysing peaking generation capacity, this becomes readily apparent (see Figure 1 below). • Two thirds of the peaking generation capacity in NSW, and half of the peak gener- ation capacity in Victoria is currently owned by Snowy Hydro. • This is an exceedingly concentrated market in both NSW and Victoria, according to common metrics. • Assuming \Snowy 2.0" is completed, the market share will be further increased, and the degree of concentration will become untenable. Figure 1: Current market share of peaking generation capacity for NSW and Victoria market regions. 1 Figure 2: Market share of peaking generation capacity for NSW and Victoria market, as- suming Snowy hydro peaking capacity in NSW increases by 2000 MW on completion of \Snowy 2.0". Herfindahl–Hirschman Index (HHI) The Herfindahl-Hirschman index (HHI) is a commonly used measure of market concentration and is reported annually by the Australian Energy Regulator (AER) in the `State of the Energy' market report (AER 2018, page 127). The HHI is a static metric, calculated by summing the squares of the percentage market shares for all firms participating in a market. An HHI value of 10,000 is equivalent to a 100% share, and represents complete monopoly. An HHI value of 2000 is used by the Australian Competition and Consumer Commissions (ACCC) to flag competition concerns (ACCC 2008, page 37), while the U.S Department of Justice considers markets to be unconcentrated at below 1500, moderately concentrated at 1500-2500 and highly concentrated at 2500 (U.S.
    [Show full text]
  • Part ZZZR Retailer Reliability Obligation
    Part ZZZR Retailer Reliability Obligation 11.116 Rules consequential on the making of the National Electricity Amendment (Retailer Reliability Obligation) Rule 2019 11.116.1 Application (a) For the purposes of this rule 11.116: Amending Rule means the National Electricity Amendment (Retailer Reliability Obligation) Rule 2019. ASX24 means the financial market operated by Australian Securities Exchange Limited (ACN 000 943 377) under the Australian Market Licence (Australian Securities Exchange Limited) 2002. commencement date means the date of commencement of Schedules 1, 3, 4 and 5 of the Amending Rule. financial market has the meaning given under Chapter 7 of the Corporations Act 2001 (Cth). (b) Terms defined in Chapter 4A have the same meaning when used in this Part ZZZR. 11.116.2 Reliability Instrument Guidelines (a) The AER must make and publish interim Reliability Instrument Guidelines by 31 July 2019 to apply until the Reliability Instrument Guidelines are made and published under paragraph (c). (b) The AER is not required to comply with the Rules consultation procedures when making the interim guidelines under paragraph (a). (c) The AER must make and publish Reliability Instrument Guidelines under clause 4A.C.12 by 31 July 2020 and in so doing must comply with the Rules consultation procedures. 1543 11.116.3 Forecasting Best Practice Guidelines (a) The AER must make and publish interim Forecasting Best Practice Guidelines by 30 September 2019 to apply until the Forecasting Best Practice Guidelines are made and published under paragraph (c). (b) The AER is not required to comply with the Rules consultation procedures when making the interim guidelines under paragraph (a).
    [Show full text]