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  • Benchmarking electricity network monopolies: linking economic concepts on costs, pricing and efficiency

    September 2011
    Benchmarking-electricity-network-monopolies-linking-economic-concepts-on-costs-pricing-and-efficiency
    Electricity network businesses are facing growing scrutiny by the Australian Energy Regulator (AER), the public and political institutions as increasing costs of transporting electricity flow through to consumer bills. The AER has suggested modifications to the current approach to regulating electricity network businesses. MHC's desktop study of Australia’s electricity network businesses’ LRMC has found:
    • A range of LRMCs not readily explained by “common” reasons
    • The differences require further review before any definitive conclusion can be reached, particularly, where the conclusion represents the foundation for changes to the current regulatory framework
    • Electricity network businesses should explore and identify the reasons for difference
    • It is arguable whether the AER’s suggestions would improve the outcomes

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  • Our Clean Energy Future - identifying the risks

    September 2011
    Our-clean-energy-future-identifying-the-risks
    The Commonwealth Government’s Our Clean Energy Future, while providing a forward plan for de-carbonising Australia’s economy, is limited in articulating a comprehensive risk management plan to:
    • Mitigate the substantial technology risks associated with base load renewable generation systems and carbon capture storage
    • Alleviate the commercial and economic viability risks of having gas fired generation systems as an intermediate fuel
    • Understand the likely impacts on affordability and contingent liability risks associated with abatement options
    • Assure the market that further regulatory change will not occur as future governments look to adapt legislation to respond to these risks

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  • Why do rising energy costs cause so much consternation?

    September 2011
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    Rising consumer energy costs regularly draw negative media attention. Energy is essential, but so are many other services and products, and these seemingly attract less attention even though, at times, these other services have displayed historic price increases at levels far greater than energy. Possible factors driving these concerns about energy prices are:
    • It is a basic utility – it is all but impossible to function as a member of society without electricity
    • Consumers’ lack of control over actual final energy costs
    • Misallocation of the management of risk between retailers and consumers
    • Limits in technology and contracts provided to consumers
    • A perception that government involvement, direct or indirect, makes it a political target.

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  • That was then, this is now: paradigm shift in water industry retail

    September 2011
    That-was-then-this-is-now-paradigm-shift-in-water-industry-retail
    The past two years have witnessed easing drought pressures in many jurisdictions. Dam levels have risen, restrictions have loosened, and with the completion of several water programs, supply security is no longer considered an immediate risk. The enduring impact of these years, though, is the heightened level of engagement consumers now have with their water use:
    • Consumer priorities are now dominated by “value for money”
    • Retailers need to reflect these priorities and manage their changed risk
    • Increased regulatory engagement and adaptability is key

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  • A quicker way to improve maintenance costs and performance for owner-operators

    September 2011
    A-quicker-way-to-improve-maintenance-costs-and-performance-for-owner-operators
    Many owner-operator mines are struggling to meet their production targets due to an increase in the volume and frequency of unplanned downtime events across their value chains, from mobile fleets through to fixed plant assets. In addition, excessive downtime drives a substantial increase in maintenance costs and unplanned capital requests:
    • Breaking the reactive maintenance cycle requires a bottom-up, back-to-basics approach
    • The approach must be tailored to local operating conditions, but remain consistent with corporate standards
    • The reactive cycle can be halted in 12 weeks with improvements possible soon after

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  • Gas: there will be enough for domestic markets - but at what price?

    September 2011
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    Currently, key elements of Queensland’s policy for domestic gas supply are to monitor the market, and where appropriate, introduce a form of gas reservation policy (similar to Western Australia). The reservation policy “stick” is supported by encouragement to CSG to LNG proponents to supply the domestic demand:
    • A clear gap in this policy approach is that it focuses on availability and supply, and assumes that future domestic gas prices will be consistent with historic prices
    • This is a bold assumption given that gas price driven by gas supply availability in a CSG LNG world
    • Moreover, the focus on reservation policy without a price cap or floor structure may prove to be ineffective to ensuring domestic gas at the least cost of supply

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  • Interview: Insights on creating a high-performance workforce

    September 2011
    Interview-insights-on-creating-a-high-performance-workforce
    Lyn Iacumin talks to QSI about:
    • Her recent appointment as Senior Branch Manager, Service Delivery at ActewAGL
    • Effective leadership, and 
    • Building an engaged workforce

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