HOUSE OF ASSEMBLY
LAID ON THE TABLE
19 February 2013
Energy Consumers’
Council
2011-2012
REPORT
September 2012
CONTENTS
CHAIRPERSON’S LETTER OF TRANSMISSION ...................................................... 3
1.
INTRODUCTION ............................................................................................... 4
2.
COUNCIL MEMBERSHIP ................................................................................. 5
2.1 Meeting Attendance ........................................................................................ 7
3.
ACTIVITIES OF THE COUNCIL ....................................................................... 8
4.
ELECTRICITY ISSUES ................................................................................... 12
4.1 Electricity Prices............................................................................................ 12
4.2 Electricity Transfers ...................................................................................... 14
5.
GAS ISSUES................................................................................................... 16
5.1 Gas Prices ...................................................................................................... 16
5.2 Gas Transfers ................................................................................................ 18
6.
WORK PERFORMED ..................................................................................... 20
6.1. Customer Protections ................................................................................... 20
6.1.1 National Energy Customer Framework (NECF).....................................20
6.1.2 Concessions ..........................................................................................21
6.1.3 Inset Networks .......................................................................................23
6.1.4 Memorandum of Understanding – Customer Hardship..........................24
6.2 Demand Side Management ........................................................................... 24
6.2.1 Solar Cities Program..............................................................................24
6.2.2 Smart Meters/ Smart Grids ....................................................................25
6.3 Energy Efficiency .......................................................................................... 26
6.3.1 Existing Schemes and Standards ..........................................................26
6.3.2 Residential Energy Efficiency Scheme ..................................................26
6.4 Energy Supplies ............................................................................................ 28
6.4.1 Supply and Demand Balance for Electricity ...........................................28
6.4.2 Transmission and Interconnector Capacity............................................28
6.5 Greenhouse Gas Abatement ........................................................................ 29
6.5.1 Carbon Price..........................................................................................29
6.6 Renewable Energy......................................................................................... 30
6.6.1 Photovoltaic (PV) Systems ....................................................................30
6.6.2 Wave Energy .........................................................................................31
6.6.3 GreenPower...........................................................................................32
6.6.4 Alternative Fuels/ Electric Vehicles........................................................33
6.6.5 Energy Battery Storage..........................................................................33
6.7 Retail Energy Price........................................................................................ 34
6.8 Wholesale Energy Price ................................................................................ 35
6.8.1 MEU Proposed Rule Change.................................................................35
6.9 Presentations................................................................................................. 37
7.
WORK PLAN FOR 2012-2013........................................................................ 38
A.
ABBREVIATIONS ........................................................................................... 40
B.
ELECTRICITY INDUSTRY PARTICIPANTS AS AT 30 JUNE 2011 .............. 42
C.
SUPPLY CAPACITY IN SOUTH AUSTRALIA ............................................... 43
D.
ORGANISATIONS .......................................................................................... 45
Energy Consumers’ Council 2011-2012 Annual Report
2
CHAIRPERSON’S LETTER OF TRANSMISSION
Doc Ref: 6084955
11 September 2012
Hon Tom Koutsantonis MP
Minister for Mineral Resources and Energy
GPO Box 2832
ADELAIDE SA 5001
Dear Minister
It is our pleasure to provide you with the tenth Annual
Report of the Energy Consumers’ Council of South
Australia.
This report covers the Council’s activities during the year
2011-2012. In particular, it covers the Council’s
discussions, actions and submissions on a range of
energy issues, as well as presentations given to the
Council from various stakeholders in the energy sector.
We would like to express our sincere appreciation to the
Energy Markets and Programs Division, Department for
Manufacturing, Innovation, Trade, Resources and Energy
for their Secretariat assistance during the 2011-2012 year.
Yours faithfully
Owen Covick
(Chairperson)
Owen Covick
Chairperson
Max Baldock
Deputy Chairperson
Energy Consumers’ Council 2011-2012 Annual Report
Max Baldock
(Deputy Chairperson)
3
1.
INTRODUCTION
The establishment of the Energy Consumers’ Council (the Council) was a key
commitment of the current Government in 2002. The Council is called upon to provide
high level policy advice to the Government on energy policy issues, including pricing
and the reliability of supplies and services in the South Australian energy sector.
The Council reports directly to Government on a regular basis, thereby allowing
representatives of energy users direct access to Government and the ability to have
real and practical input into energy policy development.
The Council’s Terms of Reference during the year 2011-2012 were to1:
(a)
Provide the Minister with high level advice regarding the price and
reliability of energy supplied to consumers;
(b)
Provide the Minister with advice on proposals to achieve more affordable
and reliable energy supplies to consumers;
(c)
Review and report at least annually on South Australian and interstate
energy prices;
(d)
Review and report at least annually on factors affecting energy prices in
South Australia;
(e)
Review and report annually on the performance of the energy entities
operating in South Australia from a consumer’s perspective;
(f)
Advise the Minister on the practices of the electricity entities that are of
note, by virtue of being either exemplary or deficient;
(g)
Provide the Minister with advice concerning reviews undertaken by
national energy regulators, and on likely impacts and implications of
national energy initiatives on South Australian energy consumers;
(h)
Provide the Minister with advice in relation to such matters as the Minister
may request from time to time;
(i)
Refer matters to the Essential Services Commission of South Australia
(ESCOSA) or the Energy Industry Ombudsman (EIOSA), as appropriate.
The Council has established a website at www.sa.gov.au/ecc. The site provides
information on the Council, its members, and activities, and copies of background
papers and reports are added to the site from time to time. Minutes of meetings of the
Council and sub-committees are also placed on the website, as well as the
presentations given to the Council from various stakeholders in the energy sector.
1
.The Council’s Charter can be obtained from the Council’s website.
Energy Consumers’ Council 2011-2012 Annual Report
4
2.
COUNCIL MEMBERSHIP
The members of the Council during 2011-2012 were:
Chairperson
Deputy Chairperson
Owen Covick
Max Baldock
Flinders University
Past President, State Retailers Association
Energy Consumers’
Coalition of SA
Business SA
John Pike
Antony Clarke (proxy)
South Australian
Farmers Federation
South Australian Chamber of
Mines and Energy
Heather I’Anson
Nigel Long/ Lewis Stoll
The Property Council of Australia
Consumers Association
Australia Inc
Christina Hagi/ Katharina Surikow2
Anthony Moore
of
South
Local Government Association
Helen Nichols3
____________________________________________________________________
Representative of
Household Consumers
Representative of
Household Consumers
Jane Fisher/ Sandra Lilburn/ Tom Stead4
Rosalyn Williams/ Jo De Silva
COTA SA
South Australian Council of Social Service
The members of the Council represent a number of diverse groups and the interests
of consumer groups may vary. In general, the Council’s activities are based on a
consensus of views. It should be noted, however, that in cases where a more
contentious question or issue arises for discussion, the views of some of the individual
organisations represented on the Council may differ. Under such circumstances a
decision is made by majority of the Council and those members who voted against the
motion are asked whether they wish to have their dissent formally recorded in the
minutes.
The Council has formed two specialist sub-committees for members to concentrate on
specific areas of work. All members are invited to attend the sub-committee meetings.
2
3
4
Katharina Surikow joined the Council in December 2011
Helen Nichols joined the Council in November 2011
Tom Stead resigned as the proxy member for COTA SA in February 2012
Energy Consumers’ Council 2011-2012 Annual Report
5
The Demand Side Management (DSM) Sub-Committee examines issues associated
with managing peak loads, energy efficiency and embedded generation.
The Special Needs Sub-Committee (SNC) concentrates on issues which are of
particular concern to low-income and vulnerable consumers, for example,
disconnections, penalty payments and pre-payment programs.
Energy Consumers’ Council Members
Back Row: Lewis Stoll, Owen Covick (Chairperson), Katharina Surikow, John Pike,
Max Baldock (Deputy Chairperson)
Front Row: Rosalyn Williams, Heather I’Anson, Anthony Moore, Jane Fisher, Helen Nichols,
Antony Clarke
Energy Consumers’ Council 2011-2012 Annual Report
6
2.1
Meeting Attendance
Attendance by Council members at meetings of the Council is shown in Table 2-1.
Table 2-1: 2011-2012 Meeting Attendance
Energy Consumers’
Council
Special Needs
Sub-Committee
JOINT Special
Needs/Demand
Side Management
Sub-Committee
11
4
4
9
2
4
11
4
4
7
4
-
10
2
2
9
4
4
2
-
-
2
-
-
1
7
3
1
-
11
2
4
-
-
-
-
-
-
4
1
-
1
-
8
4
-
1
-
-
3
1
-
4
-
-
TOTAL MEETINGS HELD
Chairperson:
Owen Covick
Deputy Chairperson:
Max Baldock
Energy Consumers’ Coalition of SA:
John Pike
Consumers Association of SA Inc:
Anthony Moore
Representative for Household
Consumers, South Australian Council
of Social Service:
Rosalyn Williams
Proxy:
Jo De Silva
Representative for Household
Consumers, COTA SA:
Jane Fisher
Proxy:
Sandra Lilburn
(previously Tom Stead)
South Australian Farmers Federation:
Heather I’Anson
Proxy:
Deane Crabb
The Property Council of Australia –
SA Division:
Christina Hagi
Proxies:
Katharina Surikow
Malcolm Creswell
Business SA:
VACANT
Proxy:
Antony Clarke
South Australian Chamber of Mines
and Energy:
Nigel Long
Proxy:
Lewis Stoll
Local Government Association (SA):
Helen Nichols
Energy Consumers’ Council 2011-2012 Annual Report
7
3.
ACTIVITIES OF THE COUNCIL
During 2011-2012 the Council provided advice to the Minister for Resources and
Energy on a range of topics, including the potential exercise of ‘market power’ on the
National Electricity Market (NEM), level of the energy concession and the
Commonwealth Department of Resources, Energy and Tourism’s Draft Energy White
Paper 2011.
In addition, the matters addressed by the Council are described in more detail in
Section 6 of this report, and include:

Monitoring progress in the development of Smart Grids.

Active interest in the costs and benefits of a possible rollout of Smart Meters in
South Australia.

Monitoring developments in the Adelaide Solar Cities Program.

Monitoring developments in renewable energy technology including solar
photovoltaic, wind power, wave power, geothermal and cogeneration.

Issues related to the proposed rule change to address ‘Market Power’ within the
NEM.

Initiatives to improve energy efficiency within housing.

Monitoring progress on the Government’s Residential Energy Efficiency Scheme
(REES) and other programs.

Ongoing coordination of the Memorandum of Understanding (MOU) - for Better
Practices in the Provision of Assistance to South Australian Energy Customers
Experiencing Financial Hardship and Having Difficulties in Meeting Payments for
Energy Debts.

Monitoring of the standing contract prices for electricity and gas.

Issues related to the introduction of a carbon tax, including impact on energy
prices.

Monitoring developments related to inset networks.

Monitoring and contributing to the development of the National Energy Customer
Framework (NECF).

Active interest in the development of alternative fuels and electric vehicles.

Monitoring developments related to new technologies, including advances in
energy battery storage.
Energy Consumers’ Council 2011-2012 Annual Report
8
Table 3-1 provides a summary of meetings held by the Council, including SubCommittee meetings, during 2011-2012.
Table 3-1: 2011-2012 Meeting Synopsis
Energy Consumers’ Council Full Meetings:
No.
Date
Discussion
111
6 July 2011
-
Attendance by Minister for Energy
MEU’s Proposed Rule Change
Draft 2010/2011 Annual Report
Draft letter to the Minister re MOU Hardship
112
3 August 2011
-
Carbon Tax Pricing
Draft letter to the Minister re MOU Hardship
Draft 2010/2011 Annual Report – Subsequent Draft
Work Plan 2011/12
Presentation by Dario De Bortoli, Origin
“Update on Solar Cities Program”
Presentation by Vince Duffy, Energy Division, Department for
Transport, Energy and Infrastructure (DTEI)
“MEU’s Proposed Rule Change”
113
7 September 2011
-
Group Photograph for Annual Report
Annual Report 2010/11 - Final
Issues for Council Consideration
MEU Proposed Rule Change
Carbon Tax Pricing
114
5 October 2011
- SNC Sub-Committee Report
- ElectraNet’s ‘Network 2035 Vision’ Consultation Paper
- Energy Hardship MOU – Decision of the Minister
Presentation by Christian Gerlach, Wave Rider
“Update on Wave Power”
115
2 November 2011
- Letter to the Minister re Rule Change – ‘Market Power’
- MCE Rule Change Proposal – Distribution Network Planning
and Expansion Framework
- Concessions
- Star Ratings/ Energy Efficiency Greenhouse Disclosure
116
7 December 2011
- MOU/ NECF Comparison – First Draft
- Concessions
- Double-Glazing
Presentation by Doug Schmidt and Grant Cox, ETSA Utilities
“Smart Grids/ Smart Meters”
Presentation by Tom Kakoschke, Energy Markets and Programs
Division, Department for Manufacturing, Innovation, Trade,
Resources and Energy (DMITRE)
“Energy Programs”
Energy Consumers’ Council 2011-2012 Annual Report
9
117
1 February 2012
-
Attendance by the Minister for Mineral Resources and Energy
MOU/ NECF Comparison
Draft Energy White Paper
Concessions
Double-Glazing/ Building Energy Efficiency
Presentation by Ruth Gill, Energy Markets and Programs
Division, Department for Manufacturing, Innovation, Trade,
Resources and Energy (DMITRE)
“Overview of GreenPower”
118
7 March 2012
- MOU/ NECF Comparison
- Solar Feed-In Tariff – Retirement Villages
- Work Plan
Presentation by Dr Paul Kerin and Adam Wilson, ESCOSA
“Update on ESCOSA”
119
4 April 2012
-
Energy Bills Hardship
MOU/ NECF Comparison
Review of Charter
Draft Energy White Paper 2011
Attendance by Mike Sinkunas, Small Business Commissioner to
discuss:
“Inset Networks”
120
2 May 2012
-
Sub-Committee Reports – Action Items
Energy Bills Hardship
Draft Energy White Paper 2011
MOU Review Process
Review of Charter
Presentation by Dr Rocco Zito, University of South Australia
“Alternative Fuels/ Electric Vehicles”
121
6 June 2012
- Objectives of the REES Scheme
- MOU Review Process
- Work Plan for 2012/13
Presentation by Richard Turner, Zen Energy Systems:
“Energy Battery Storage”
Energy Consumers’ Council 2011-2012 Annual Report
10
Special Needs Sub-Committee:
21 July 2011
- Carbon Tax Pricing
24 August 2011
- Issues for Council Consideration (per Minister’s
advice):
 Low income households/ Electricity Standing
Contract
 Smart Meters/ Victorian findings
 Star ratings/ energy efficiency in households
 Gas fixed charges/ decrease in gas consumption
 MEU proposed Rule Change – Minister’s
involvement
- Issues for Council consideration (per Minister’s
advice)
28 September 2011
- AEMC ‘National Electricity Amendment (Potential
Generator Market Power in the NEM)’ – Directions
Paper
20 October 2011
- AEMC National Electricity Amendment (Potential
Generator Market Power in the NEM) – Outcomes of
Public Forum
- Rule Change Proposals:
 MCE – Distribution Network
Expansion Framework

Planning and
AER – Changes to Price Setting Rules
Q & A Session with Simon Appleby, ElectraNet
“Network 2035 Vision Consultation Paper”
29 February 2012
- Teleconference with Department for Resources,
Energy and Tourism (Canberra) - Smart Meters
Consultation
Joint Special Needs / Demand Side Management Sub-Committee Meetings
21 February 2012
- Smart Meters – Comments re Consultation Process
- Energy Bills Hardship
13 April 2012
- Energy Bills Hardship
- Draft Energy White Paper 2011
25 May 2012
- Review of Energy Hardship MOU
- Advocacy Funding Support
22 June 2012
-
MOU Current Process and 2011 Retailer Reports
Dealing with Household Fuel Poverty
National Energy Customer Framework (NECF)
Advocacy Funding Models
Energy Consumers’ Council 2011-2012 Annual Report
11
4.
4.1
ELECTRICITY ISSUES
Electricity Prices
South Australian Retail Electricity Price Trends
For a number of years, the Council has compared residential electricity bills for an
average usage customer. Figure 4-1 shows the average electricity bill for a standing
contract customer and for a customer on the “Best Market Offer”.
The cost model assumes that an average usage customer consumes 5,000 kWh of
peak electricity and 2,000 kWh of off-peak hot water per annum (consistent with the
assumptions used in the ESCOSA 2005 to 2010 Electricity Distribution Price
Determination).5
The Standing Contract Price line shows the typical average customer bill per annum if
the customer remained on a standing contract for the entire period. It demonstrates
the cost faced by a customer who has not taken out a market contract. The standing
contract cost per annum following the July 2012 price increase was $2290 (GSTinclusive).
The Best Market Offer line illustrates the cheapest market contract that existed at the
relevant dates for the average usage customer6 described above, as determined by
the ESCOSA Estimator price comparison service. The best market contract available
following the July 2012 price increases was $2,006 per annum, not including other
potential non-price incentives offered by retailers. Some retailers offer various nonprice incentives which should be taken into account when customers assess the best
available offer. In addition, a variety of green products are on offer, including
government accredited GreenPower, and these contain a range of premiums.
5
6
ESCOSA, “2005-2010 Electricity Distribution Price Determination Part A - Statement of Reasons”, page 210.
Average usage customer consuming 5,000 kWh of peak electricity and 2,000 kWh of off-peak hot water per year.
Energy Consumers’ Council 2011-2012 Annual Report
12
Figure 4-1: Average Usage Bill July 2001 to July 2012
Standing Contract Price
South Australia Retail Electricity Prices Trend Series
Best Market Offer
5000 KWh p.a plus 2000KWh p.a Off Peak Hot Water (GST Incl.)
2500
2300
2100
1900
1700
$ 1500
1300
1100
900
700
500
Jul01
Jan02
Jul02
Jan03
Jul03
Jan04
Jul04
Jan05
Jul05
Jan06
Jul06
Jan07
Jul07
Jan08
Jul08
Jan09
Jul09
Jan10
Jul10
Jan11
Jul11
Jan12
Jul12
Date
Standing Contract Price
In late 2010, ESCOSA established a price path for the AGL electricity standing
contract tariff, which commenced on 1 January 2011 and will expire on 30 June 2014.
ESCOSA’s price path utilises a Relative Price Movement index (RPM) methodology to
adjust prices in line with South Australian market contract price movements within a
pre-determined cap and floor. The RPM index is applied annually for the remainder of
the price path.
ESCOSA undertook a standing contract price adjustment for electricity, to commence
on 1 July 2012. This adjustment was in line with ESCOSA’s ability to vary an existing
price path or make an entirely new determination if ‘special circumstances’ exist.
From July 1, 2012, the average standing contract tariff increased by approximately
18%. Contributors to the increase include network charges and carbon pricing.
Increases in network costs drove an increase of 10.9% in the standing contract tariff.
The Solar Feed-in Scheme component of the network costs includes an amount being
sought for feed-in tariff payments incurred in 2010-11 (plus interest), an expected
amount for 2011-12, and a forecast for 2012-13.
The Commonwealth Government’s carbon price accounted for 4.6% of the July 2012
increase. The carbon price pass through is less than half the amount proposed by
AGL as ESCOSA’s decision was based on South Australia’s carbon emissions, which
are much lower than most other states due to our relatively clean generation
technology.
Energy Consumers’ Council 2011-2012 Annual Report
13
The Commonwealth Government’s household assistance scheme, which entitles
householders to receive a combination of increased payments or tax cuts worth an
average of $10.10 per week, is expected to adequately compensate the majority of
South Australian householders for the carbon price pass through on their electricity
and gas bills.
In addition to publishing its standing contract price adjustment, ESCOSA announced
research that suggests improved liquidity in the contract market may have changed
wholesale electricity costs.
Accordingly, on 15 June 2012, the Commission announced that it had decided to
commence an investigation of the wholesale electricity component of the retail costs
that make up the standing contract price.
Regional Prices
A tariff increase will be implemented from 1 August 2012 for customers under the
Remote Areas Energy Supplies (RAES) scheme to meet increasing costs of providing
electricity services to these remote communities while the Government continues to
maintain a significant ongoing subsidy. After the August 2012 price increase, small to
medium domestic customers will be charged on average about 5 per cent higher than
equivalent on-grid consumers.
General supply customers will see increases between 14 per cent and 35 per cent
compared to pre August 2012 bills. 85 per cent of General Supply customers who
consume less than 35,000 kWh p.a. will face an average increase of 15 per cent.
Comparison of Interstate Retail Electricity Prices
The following provides a summary of recently announced increases in standing
contract prices for residential customers to apply from 1 July 2012 in South Australia
and other jurisdictions:






4.2
South Australia - 18 per cent
NSW - 11.8 per cent (Integral), 19.7 per cent (Country Energy) and 17.9 per
cent (Energy Australia)
Qld - no changes to current tariff rate plus carbon price
WA - 29 per cent (regulated) / 21 percent (ave. across all tariff classes)
ACT - 17.74 per cent
Tasmania - 10.56 per cent
Electricity Transfers
As at 30 June 2012, there had been 693,531 South Australian small customer
transfers to an electricity contract with another retailer for the 5 year period since
1 July 2007.7
These transfer figures only include the number of customers transferring to another
retailer, and not those taking out a different contract with the same retailer. They also
7
Based on electricity customer transfer figures published by NEMMCO/AEMO.
transfers for some customers.
Energy Consumers’ Council 2011-2012 Annual Report
Note that these figures include multiple
14
include multiple transfers (i.e. where a single customer has moved to a number of
contracts in succession, each move would be recorded as a transfer).
Figure 4-2 shows a comparison of the monthly small customer electricity gross
switching rate from July 2007 for South Australia relative to Victoria, New South Wales
and Queensland, based on the AEMO published transfer figures. Electricity full retail
contestability (FRC) commenced in Victoria and New South Wales in January 2002, a
year earlier than in South Australia, while electricity FRC commenced more recently in
Queensland in July 2007.
As can be seen from figure 4-2, aside from the high level of activity in mid 2007-2008
and the monthly peak in early 2008-2009, the level of switching in South Australia has
remained relatively steady until early 2010/2011. From August 2010, electricity
switching rates started increasing sharply, peaking in May 2012.
Figure 4-2
Small Customer Monthly Electricity Gross Switching Rate
3.5%
3.0%
Percentage (%)
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
Jul- Sep- Nov- Jan- Mar- May- Jul- Sep- Nov- Jan- Mar- May- Jul- Sep- Nov- Jan- Mar- May- Jul- Sep- Nov- Jan- Mar- May- Jul- Sep- Nov- Jan- Mar- May07
07
07
08
08
08
08
08
08
09
09
09
09
09
09
10
10
10
10
10
10
11
11
11
11
11
11
12
12
12
Month
SA
Energy Consumers’ Council 2011-2012 Annual Report
VIC
NSW
QLD
15
Table 4-1 shows retailer market shares for South Australian residential electricity
customers, comparing the position for different periods, from and including
30 June 2008.
Table 4-1: South Australian Residential Electricity Customer Market Shares
(by customer numbers)
Retailer
June 2008
June 2009
June 2010
June 2011
December
2011
Standing contract
32%
30%
27%
25%
24%
26%
26%
28%
AGL
Market Contract
24%
Sub total AGL
(1)
25%
(1)
56%
55%
53%
51%
52%
Origin Energy
15%
16%
18%
20%
18%
TRUenergy
13%
13%
13%
12%
12%
Simply Energy
10%
9%
8%
8%
9%
0%
1%
8%
8%
8%
100%
100%
100%
100%
100%
All others
Total
Notes:
(1) Includes Powerdirect (2 per cent), which was purchased by AGL in 2007.
5.
GAS ISSUES
5.1
Gas Prices
On 28 July 2004, South Australia introduced FRC to the gas market. Tables 5-1 and
5-2 compare the maximum Origin Energy standing contract prices for gas
consumption (Adelaide region) over the past five years.
Table 5-1: Residential Gas Tariffs for the Adelaide Region (Excl GST)
1 Jul-08(1)
1-Jul-09
1-Jul-10
1-Aug-11(2)
1-Jul-12
Ave. annual
change
(%)
Supply Charge $
per quarter:
44.27
47.44
49.62
55.2
58.96
7
For the first 4,500
megajoules per
quarter (c/MJ):
1.9652
2.004
2.047
2.42
3.018
12
and for each
additional MJ per
quarter thereafter
(c/MJ):
1.2929
1.345
1.397
1.38
1.578
5
Notes:
(1) The first year of a three year price path covering 1 July 2008 until 30 June 2011.
(2) The first year of a three year price path covering 1 July 2011 until 30 June 2014.
Energy Consumers’ Council 2011-2012 Annual Report
16
Table 5-2: Gas Tariffs for Small & Medium Enterprises (<1TJ p.a.) for the
Adelaide Region (Excl GST)
1-Jul-08
1-Jul-09
1-Jul-10
1-Jul-11
1 Jul-12
Ave. annual
change
(%)
Supply Charge
$ per quarter:
75.69
79.95
84.92
95.05
101.33
8
For the first 25,000
megajoules per
quarter (c/MJ):
1.4257
1.474
1.551
1.73
2.065
10
For the next 65,000
megajoules per
quarter (c/MJ):
1.4096
1.463
1.538
1.71
2.051
10
and for each
additional MJ per
quarter thereafter
(c/MJ):
1.0454
1.083
1.106
1.22
1.464
9
ESCOSA released its final gas standing contract price determination in June 2011 that
applies to Origin Energy customers who consume less than 1 Terajoule of gas per
annum and remain on the standing contract. The determination covers the period
1 July 2011 to 30 June 2014.
ESCOSA’s final determination provided for an increase of $84 per annum in the
annual bill of an average residential customer consuming 21,000 megajoules (MJs)
per annum (or 13.81 per cent) for the financial year 2011/2012. This increase is
comprised of an $18 (or 6.32 per cent) increase in the retail component and a $66 (or
20.09 per cent) increase in Envestra’s distribution component.
On 15 June 2012, ESCOSA published its decision on a price adjustment to the gas
standing contract price, to apply from 1 July 2012.
This price adjustment for the 2012/2013 financial year will result in an increase in the
gas bill of an average residential customer consuming 21GJ per annum by $122.77
per annum or 17.7%, resulting in a total annual bill of $815.54 (GST exclusive).
This increase is made up of $85.39 (or 12.3%) attributable to Envestra’s distribution
component. This increase incorporates the January 2012 decision by the Australian
Competition Tribunal (ACT) to partly uphold an Envestra appeal in relation to its final
price determination.
There is also an additional pass through of Origin’s carbon tax costs equalling $30.87
(or 4.5%) of the overall increase in an average household consumer’s average gas
bill.
In addition, the AER has approved a cost pass through for the impact of the carbon
price on Envestra’s gas distribution network, which equates to a $10.84 per annum
increase in a household’s gas bill. This approved amount will be passed through
Energy Consumers’ Council 2011-2012 Annual Report
17
directly to gas standing contract tariffs, and is additional to the increase approved by
ESCOSA applying from 1 July 2012.
As at December 2011, approximately 24 per cent of residential gas customers were
on the standing contract.
To show the comparison of the gas standing contract price and the best gas only
market contract price for an average residential customer (consuming 21GJ per
annum), the ESCOSA price comparison service was used. The result showed that the
gas standing contract tariff would cost the average residential customer $909 per
annum (GST inclusive), with the best gas only market contract available to customers
costing $715 per annum.
5.2
Gas Transfers
As at 30 June 2012, there had been 207,586 South Australian small customer
transfers to a gas contract with another retailer for the 5 year period since
1 July 2007.8
These transfer figures only include the number of customers transferring to another
retailer, and not those taking out a different contract with the same retailer.
As is the case for electricity (refer Section 4-2), these transfer figures may include
multiple transfers (i.e. where a single customer has moved to a number of contracts in
succession, each move would be recorded as a transfer).
Figure 5-1 shows a comparison of the monthly small customer gas gross switching
rate from July 2007 for South Australia relative to Victoria, combined NSW & ACT, and
Queensland. Gas FRC commenced in NSW in January 2002, Victoria in October
2002, and for Queensland from July 2007.
8
Based on gas customer transfer figures published by NEMMCO/AEMO. Note that these figures include multiple transfers for
some customers.
Energy Consumers’ Council 2011-2012 Annual Report
18
Figure 5-1
Small Customer Monthly Gas Gross Switching Rate
3.5%
3.0%
Percentage (%)
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
Jul- Sep- Nov- Jan- Mar- May- Jul- Sep- Nov- Jan- Mar- May- Jul- Sep- Nov- Jan- Mar- May- Jul- Sep- Nov- Jan- Mar- May- Jul- Sep- Nov- Jan- Mar- May07
07
07
08
08
08
08
08
08
09
09
09
09
09
09
10
10
10
10
10
10
11
11
11
11
11
11
12
12
12
Month
SA
VIC
NSW
QLD
Table 5-3 shows retailer market shares for South Australian residential gas customers,
comparing the position for different periods, from and including 30 June 2008.
Table 5-3: South Australian Residential Gas Customer Market Shares
(by customer numbers)
June 2008
June 2009
June 2010
June 2011
December
2011
Standing contract
38%
33%
28%
25%
24%
Market Contract
20%
23%
25%
26%
28%
58%
56%
53%
51%
52%
AGL
19%
21%
25%
27%
26%
TRUenergy
14%
13%
15%
14%
15%
Simply Energy
9%
9%
7%
7%
7%
100%
100%
100%
100%
100%
Retailer
Origin Energy
Sub total Origin
9
Total
9
Column totals may not equal 100 as a consequence of rounding.
Energy Consumers’ Council 2011-2012 Annual Report
19
6.
WORK PERFORMED
At the beginning of the 2011-2012 year, the Council identified a number of key energy
policy areas requiring the Council’s attention, including as follows:









Customer Protections
Demand Side Management
Energy Efficiency
Energy Supplies
Greenhouse Gas Abatement
Renewable Energy
Retail Energy Price
Smart Grids
Wholesale Energy Price
The outcomes of the Council’s work in these areas are described below.
6.1. Customer Protections
6.1.1
National Energy Customer Framework (NECF)
The NECF had been planned to commence operation on 1 July 2012 as a national10
regime for the sale and supply of electricity and gas by retailers and distributors to
retail customers. It comprises national Laws, Rules and Regulations that contain a
range of consumer protections and represent a significant step toward a simplified
regulatory regime for retailers and distributors.
The NECF is part of a cooperative Commonwealth, State and Territory regime and is
the next step in the program of national energy reforms led by the Ministerial Council
on Energy (MCE)11 under the Council of Australian Governments (COAG) Australian
Energy Market Agreement (AEMA).
The commencement of the NECF requires:
the proclamation of the:
o National Energy Retail Law (South Australia) Act 2011;
o Statutes Amendment (National Energy Retail Law) Act 2011; and
o Part 1 and Part 3 of the National Energy Retail Law (South Australia)
(Implementation) Amendment Act 2012
making of the:
o National Energy Retail Regulations 2012;
o National Gas (South Australia) (National Energy Retail Law) Variation
Regulations 2012; and
o National Electricity (South Australia) (National Energy Retail Law)
Variation Regulations 2012
10
11
NECF legislation not applicable in Western Australia or Northern Territory.
The Ministerial Council on Energy (MCE) has been replaced by the Standing Council on Energy and Resources (SCER).
Energy Consumers’ Council 2011-2012 Annual Report
20
and making of the following Rules by the South Australian Minister for Mineral
Resources and Energy (the Minister):
o National Energy Retail Rules;
o National Electricity (National Energy Retail Law) Amendment Rule 2012;
o National Gas (National Energy Retail Law) Amendment Rule 2012; and
o National Gas Retail Market Amendment Procedures 2012.
The NECF will first apply in Tasmania and the Australian Capital Territory. On 1 July
2012, South Australia’s legislative package to implement the NECF was still being
considered by South Australian Parliament. The South Australian Government,
however, remains committed to adopting the national regime as soon as possible.
The Council has been advised that generally, the framework offers similar consumer
protections as the existing regulatory regime in South Australia, with the addition of a
requirement on retailers to develop a customer hardship policy with approval by the
AER.
The Council recognises the importance of a national regulatory framework and will
continue to keep abreast of the issues arising from the development of such a
framework.
6.1.2
Concessions
During the year the Council considered the impact of rising energy costs on
vulnerable customers and the current rate of the South Australian energy concession.
Effective from 1 July 2011 the concession increased from $150 per year to $158 per
year, with a further increase of 5 per cent effective as at 1 July 2012, which will take
the concession amount to $165 per year.
While the Council welcomed these increases in the energy concession, it remains
concerned about access to concessions and the take-up rate, with many eligible
customers being unaware of the concessions available to them. In particular, new
arrivals to the country can have poor literacy and numeracy skills, and there is now
very little assistance available in this regard since the closure of Families SA to the
general public on 1 July 2011.
The subject of access to such assistance was discussed with the Minister during his
attendance at the Council’s 1 February 2012 meeting, with a letter providing further
advice concerning these discussions subsequently being sent to the Minister from the
Council on 10 February 2012.
The Council is further concerned about the rate of increase in the energy concession,
noting that energy prices are increasing at a much higher rate than the level of
concession (refer Table 6-1). The Council is of the view that an alternative method of
managing the rate of the concession is needed and in its letter to the Minister dated
10 May 2012, the Council acknowledged the 5% increase in the concession as at
1 July 2012, but stated that it believes that an appropriate indexing arrangement in
line with the cost of energy would result in a fairer concession system.
This would be of great benefit to people on low incomes and provide some assistance
to enable them to pay their energy bills.
Energy Consumers’ Council 2011-2012 Annual Report
21
Table 6.1: Energy Concessions compared with Residential Electricity Prices
July 2002 – August 2011
ENERGY CONCESSIONS COMPARED WITH RESIDENTIAL ELECTRICITY
PRICES
JUL 2002-AUGUST 2011
30
20
10
0
Jul-02
Jul-03
Jul-04
Jul-05
Jul-06
Jul-07
Energy concession in $10's
Jul-08
Jul-09 Aug-10 Jan-11 Aug-11
Residential Annual Electricity Prices in$100's
Additionally, the escalating rate of the fixed supply charge for both electricity and gas
has been a further cause of concern and subsequent discussion for the Council.
Consumers can take measures to reduce their energy consumption and also improve
the energy efficiency of their homes and businesses in order to reduce costs, but
there is no action that can be taken to reduce the fixed supply charge applicable to
both electricity and gas.
Table 6.2 below, clearly illustrates how these increases in energy supply charges are
outstripping concession increases, causing significant financial hardship for
vulnerable members of the community.
Energy Consumers’ Council 2011-2012 Annual Report
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Table 6.2: Energy Concessions compared with Annual Cumulative Residential
Electricity Supply Charge Increases - July 2007 – July 2012
These tables were also included in the Council’s letter to the Minister dated
10 May 2012.
6.1.3
Inset Networks
In December 2011, the AER developed the Exempt Selling Guideline which outlines
the regulatory framework for insert networks under the NECF.
The exemptions regime captures such situations by exempting these types of entities
from the requirement to hold a retailer authorisation. The Retail Law and Rules set out
the exemptions regime, and the AER is responsible for regulating exempt persons
and placing conditions on exemptions.
The AER is authorised to exempt persons or classes of persons from the requirement
to hold a retailer authorisation. The Retail Rules provide for three different types of
exemption:
 deemed exemptions,
 registrable exemptions, and
 individual exemptions
The guideline explains how to apply for an individual exemption, and how to obtain a
registrable exemption (by registering with the AER as belonging to a class of
registrable exemption). It also discusses the factors that the AER will consider in
assessing individual exemption applications. The guideline sets out the various
classes of deemed and registrable exemptions, and the conditions attached to each
class of deemed and registrable exemption.
Energy Consumers’ Council 2011-2012 Annual Report
23
The Council also notes that once South Australia implements NECF, regulation of
inset networks will transfer from ESCOSA to the AER.
6.1.4
Memorandum of Understanding – Customer Hardship
The Council played a significant role and was the core driver in establishing a
Memorandum of Understanding (MOU) for ‘Better Practices in the Provision of
Assistance to South Australian Energy Customers Experiencing Financial Hardship
and Having Difficulties in Meeting Payments for Energy Debts’. The MOU, which was
officially signed on 11 January 2008, commits the South Australian Government,
energy retailers and community agencies to the objective of assisting energy
customers experiencing hardship to manage their payments for the supply of energy,
so that they remain connected to an energy supply.
A process for a review of the MOU is presently being considered by the Minister. This
review will need to be considered in light of implementation of the NECF in 2012.
In May/June 2012, in line with the requirements of the MOU, review reports for 2011
were received by the Council from all retailers who are signatories to the agreement.
A consolidated copy of the reports will be provided to the Minister for Mineral
Resources and Energy and the Minister for Communities and Social Inclusion.
6.2
6.2.1
Demand Side Management
Solar Cities Program
The Solar Cities program is a $94m Australian Government initiative across 7
locations nationally. The lead proponent of the program in South Australia is Origin
Energy.
The program objectives are to:



successfully implement solar PV, price smart metering and energy efficiency
products to test the barriers of take-up of these products;
obtain data on the impact of the products and technologies on consumer
behaviour; and
maintain an ongoing consumer engagement with the program.
The program, which ends on 30 June 2013, involves the market trial of products,
introduction of new technology and community engagement strategies including:




solar energy for selected community housing sites, commercial and iconic
sites;
the roll-out of a trial number of smart meters in homes and businesses that it is
expected will assist consumers in monitoring their energy use and save
electricity, and help electricity providers better understand consumer choices;
the provision of a number of free energy efficiency and information packages,
ceiling insulations, reviews and upgrades will be provided to trial households
and commercial customers, to support energy efficient choices; and;
encouraging 100,000 homes to take up GreenPower.
Energy Consumers’ Council 2011-2012 Annual Report
24
The Adelaide Solar City program includes approximately 130,000 homes with
300,000 residents, involving four Councils covering an area up to 30 kms north of
Adelaide.
The Council is maintaining a watching brief on developments in this area and in
August 2011 Dario De Bortoli of Origin Energy gave a presentation to the Council as
an update on the Solar Cities Program.
6.2.2
Smart Meters/ Smart Grids
On 29 February 2012 an SNC Sub-Committee teleconference was conducted with
staff of the Department of Resources, Energy and Tourism (RET) in Canberra so that
the Council could provide input to RET’s ‘Smart Meters Consumer Protections and
Pricing Policy Paper.’
The following main points arose from these discussions:




by the end of 2012 every Victorian household should have a Smart Meter
(SM);
resulting operational efficiencies will include remote reading of meters, a
reduction in costs and an increase in billing accuracy. It will also allow
consumers to make informed choices;
the deployment of SM’s will involve pricing reform to address peak demand;
the framework to be in place by June 2012 will allow jurisdictions to make
decisions related to this deployment, which is likely to be retailer/market led,
with a mixture of metering involved.
The Council members present felt that the there were specific issues which should be
taken into consideration, including the following;





information asymmetry between consumers and their retailers is critical,
therefore, the availability of an ‘information hub’ will be important;
in order for consumers to benefit from new pricing arrangements they need to
be able to make informed choices. Consumers will be offered various tariffs for
peak and off peak usage, or a flat tariff, but many low income households will
not be able to change their usage;
people with poor English language skills may have difficulty when salespeople
call at their door. Strategies will therefore be needed to help educate the wider
community to be able to understand the information provided by SM’s;
any specific issues related to non-metropolitan consumers should be taken into
account; and
the notification in advance of emergency power cuts via SM’s would be
beneficial.
The Council will continue to monitor the introduction of Smart Meters within Victoria,
so that information is to hand related to the potential usage of these meters within
South Australia.
Energy Consumers’ Council 2011-2012 Annual Report
25
6.3
Energy Efficiency
6.3.1
Existing Schemes and Standards
The South Australian Government has a number of policies and programs in place to
improve the energy efficiency of homes and businesses. These include:






adoption, from September 2010, of the energy efficiency requirements for
new homes and commercial buildings in the 2010 Building Code of Australia;
adoption of minimum energy performance standards and/or labelling
requirements for a wide range of energy consuming products including air
conditioners, televisions, refrigerators and lighting;
the Residential Energy Efficiency Scheme (see section 6.3.2 below);
South Australia’s water heater installation requirements, through which most
water heaters installed into new and established dwellings need to be either
high efficiency gas, solar or electric heat pump systems;
measures to manage the energy use of air conditioners in South Australia,
including implementation of national energy efficiency requirements,
supporting implementation of the energy efficiency requirements for new
dwellings and working with industry on improving air conditioner installation
practices; and
the Building Innovation Fund, which aims to demonstrate innovative ways to
reduce the carbon footprint of existing commercial buildings.
The Government also participates, with other jurisdictions, in implementation of
national measures through the National Strategy on Energy Efficiency. Key
measures include the development of national building and equipment energy
efficiency standards and measures to improve the energy efficiency of commercial
and industrial businesses.
South Australia’s Strategic Plan includes two targets to improve energy efficiency –
one for dwellings and one for government buildings.
Many of the measures described above contribute to the target for improving energy
efficiency in dwellings. An Energy Efficiency Action Plan describes the measures the
South Australian Government is taking to improve the energy efficiency of
government operations. Improvements have come from moving to more efficient
buildings, refurbishments, using more efficient equipment and behaviour change
programs. The Energy Efficiency Action Plan is to be reviewed in the second half of
2012.
6.3.2
Residential Energy Efficiency Scheme
The Residential Energy Efficiency Scheme (REES), an energy efficiency incentive
scheme for households, was announced by the former Premier, the Hon Mike Rann
MP on 18 February 2008 and commenced in South Australia on 1 January 2009. It
requires electricity and gas retailers to meet targets each year which are about
improving energy efficiency in the residential sector. It has a particular emphasis on
benefiting low income households.
Energy Consumers’ Council 2011-2012 Annual Report
26
Energy retailers are required to meet annual greenhouse gas reduction targets, which
commenced at 155,000 tonnes in 2009 increasing to 410,000 tonnes in 2014, and
35% must come from activities provided to low income households. They meet these
targets by offering households incentives to retrofit energy saving measures (such as
energy efficient lighting, water efficient showerheads and ceiling insulation). They
must also ensure they deliver a set number of energy audits to low-income
households - 3000 audits in 2009, 5000 audits in 2010 and 2011 and 5,667 audits in
2012, 2013 and 2014.
Participation is voluntary for households and they can do so regardless of whether
they own or rent. By participating, households can save energy, save money on their
energy bills and help the environment by reducing greenhouse emissions.
It will also assist South Australian households prepare for future energy price
increases.
The Essential Services Commission of South Australia (ESCOSA), as scheme
administrator, reports annually to the Minister on the performance of energy retailers
towards achieving their REES targets. ESCOSA’s reports on the first three years of
the scheme - 2009 to 2011, show that almost all targets were achieved in these
years.
The Council considers a scheme designed to assist South Australian households in
these ways, particularly low income households, to be vitally important. The Council
would be keen to obtain further information of particular benefits to consumers and to
ensure that follow-up contact takes place to track the ongoing effectiveness of the
scheme.
The Council is concerned that the scheme needs to be better targeted towards low
income households. The Council’s prefers that audits should be conducted on site,
rather than via telephone. This would be particularly beneficial in the case of
consumers who are new arrivals and who possibly have language difficulties.
At its 6 June 2012 meeting, the Council received and noted information on the
progression of the scheme and looks forward to further discussions on the progress of
REES in 2012-2013.
DMITRE is about to commence the review of the REES required by the regulations.
DMITRE will consult with key stakeholders in mid-July 2012, gathering their views and
information to assist in advising the Minister on the scope of the REES review and the
preparation of a public Issues Paper to be released in mid-August. DMITRE plans to
release a consultation draft report and recommendations by the end of April 2013,
with a final report to be provided to the Minister by the end of June 2013. The
DMITRE review will also be informed by the ESCOSA cost-benefit analysis of Stage 1
of the REES, which was released on 29 June 2012.
The Council will be interested in contributing towards this process.
Energy Consumers’ Council 2011-2012 Annual Report
27
6.4
6.4.1
Energy Supplies
Supply and Demand Balance for Electricity
The South Australian electricity supply and demand balance is calculated each year
by AEMO and published in the Electricity Statement of Opportunities (ESOO).
Summer is the period of greatest demand. The 2012 ESOO indicates 2012/13
summer generation capacity of 4,091 megawatts (MW) and assumed generation
capacity available for the maximum demand of of 3,230 MW. The maximum demand
capacity is lower because of the assumed availability of wind and some other plant at
the time of maximum demand. The 2012 ESOO indicates that for 2012/13 under
medium economic growth, there is a 10 per cent probability of exceeding a summer
forecast demand of 3,271 MW.
As electricity supply and demand varies dynamically over time, the AEMO 2012
ESOO forecasts, using the above supply and demand assumptions, the future time at
which the reserve excess of supply over demand becomes insufficient to maintain the
standard supply reliability levels. If no new generation or demand mitigation options
above those forecast by AEMO are forthcoming, the Low Reserve Condition is
reached, under medium economic growth, in 2019/20, when 24 MW is required.
AEMO publishes the reserve deficit information for each region of the National
Electricity Market to ensure that market participants are aware of investment
opportunities based on market conditions.
6.4.2
Transmission and Interconnector Capacity
The operator of transmission lines of 132 kilovolts and above, ElectraNet is required
to ensure that it has sufficient transmission capacity to ensure circuits are available to
supply demand 99.47 per cent of the time. Financial penalties are applied by the
AER if circuit availability is below 99.10 per cent. In the most recent calendar year,
2011, ElectraNet’s total circuit availability, accounting for regulated exemptions, was
above target at 99.59 per cent.
There are two transmission interconnectors between South Australia and Victoria, the
Heywood and Murraylink interconnectors. The design limits for import transfer
capacity on these interconnectors are 460 MW for Heywood and 220 MW for
Murraylink individually and 580 MW in a combined configuration. Actual network
conditions can reduce the effective transfer capacity. Periods of high demand impose
thermal and voltage stability limits, the capacities of transmission elements
connecting to the interconnectors can limit flows and the combined transfer capacity
of the interconnectors is less than the sum of the individual capacities due to network
transfer limitations.
Energy Consumers’ Council 2011-2012 Annual Report
28
6.5
6.5.1
Greenhouse Gas Abatement
Carbon Price
The Commonwealth’s Clean Energy Future package, incorporating the key reform of
a carbon price, is expected to provide an effective measure to transition the economy
towards a low carbon future.
The package puts into place an interim emissions reduction target for Australia of 5%
by 2020 on 2000 levels, and an 80% reduction target by 2050 on 2000 levels.
Carbon pricing commenced on 1 July 2012 at a price of $23/tonne of carbon dioxide
equivalent, rising by 2.5% per annum in real terms before converting to a flexible price
cap and trade emissions trading scheme on 1 July 2015.
Around 500 of Australia’s largest polluters (25 located in South Australia) are covered
by carbon pricing, including the sectors of stationary energy, waste, rail, domestic
aviation and shipping, industrial and fugitive emissions. Agriculture and forestry will
not be covered, but will be able to generate carbon offsets. Household and light
commercial fuel use will not be subject to the carbon price.
The Commonwealth has modelled that a household’s average weekly expenditure is
estimated to increase by $3.30 per week for electricity and $1.50 per week for gas as
a result of the introduction of the carbon tax.
ESCOSA has allowed a lower carbon price pass through for the South Australian
electricity and gas standing contracts, equating to a 4.6% increase (or $1.34 per
week) in an average household’s electricity and a 4.5% increase (or $0.59 per week)
in an average household’s gas bill.
In addition, the AER has approved a cost pass through for the impact of the carbon
price on Envestra’s gas distribution network, which equates to a $10.84 per annum
increase in a household’s gas bill.
Standing contract prices are charged to small residential and business customers
who choose not to move onto a market contract.
The Commonwealth has modelled assistance to households to be $10.10 per week
on average.
On 16 September 2011, the Council wrote to the Minister to advise of preliminary
discussions which had taken place on matters related to the possible effects on
consumers of the introduction of carbon pricing.
The view of the Council was that although it appeared that pensioners would be
adequately compensated, there were concerns of the impacts on people receiving the
‘Newstart’ allowance, those not in family units covered by more general rebates,
including those on incomes below the tax free threshold, the unemployed, new
arrivals and students.
Energy Consumers’ Council 2011-2012 Annual Report
29
While noting the proposed assistance to certain industries, the Council is concerned
about the potential adverse impact on businesses that do not have high greenhouse
gas emissions, are trade exposed and therefore cannot easily pass costs onto
customers, such as small agricultural businesses.
The members of the Council will be carrying out further work on this subject and will
provide an update to the Minister on relevant issues in the future.
6.6
6.6.1
Renewable Energy
Photovoltaic (PV) Systems
The South Australian Government implemented the Solar Feed-in Scheme from
1 July 2008. The Scheme is the first of its kind in Australia and designed to reward
solar owners for their investment and encourage uptake of rooftop solar systems,
paying 44c / kWh to an eligible customer with a solar photovoltaic system that feeds
electricity into the grid.
The Scheme has been very successful in promoting the uptake of solar systems. As
at 30 April 2012, there are approximately 101,000 solar customers who have installed
a grid-connected solar system and approximately a further 21,000 persons with
approval to connect a solar system to the grid.
As a result of a review of the Scheme, the Government announced its decision to
make a number of changes to the Scheme. The Parliament passed amendments to
the Scheme in June of 2011 and these have acted to limit the cost impacts on all
electricity customers who fund it through network charges included in their bills. The
amendments also provided the solar industry and customers with a transition away
from public support. Specifically, the Parliament made the following changes:






The 44c / kWh feed-in tariff closed to new entrants from 1 October 2011. Those in
this category are eligible to receive it until 30 June 2028.
New entrants to the scheme between 1 October 2011 and 1 October 2013 are
eligible for a 16c / kWh feed-in tariff payable up to 30 September 2016.
For solar customers with approval to connect from 1 September 2010 (from the
Government’s announcement):
- The feed-in tariff is limited to one generator per customer and the first 45 kWh
per day exported to the grid.
- Solar systems may be excluded from receiving the feed-in tariff if, in the
opinion of ETSA Utilities, they are operating for the dominant purpose of
feeding-in to the grid.
Persons who upgrade their solar system from 1 October 2011 will become
ineligible to receive the 44c / kWh or 16c / kWh feed-in tariff.
Customers will also cease to receive the feed-in tariff for their solar system if it is
disconnected and moved to another site on the network.
Energy retailers who contract with eligible solar customers are obligated to pay at
least the minimum rate for the power as determined by ESCOSA.
In terms of the cost of the Solar Feed-in Scheme, ETSA Utilities has submitted its
2012-13 pricing proposal to the Australian Energy Regulator. It contains ETSA
Energy Consumers’ Council 2011-2012 Annual Report
30
Utilities’ proposed recovery of costs associated with the Solar Feed-in Scheme for
feed-in tariff payments incurred in 2010-11 (plus interest), an expected amount for
2011-12, and a forecast for 2012-13.
The Council has had concerns regarding the impact on all electricity consumers, (and
particularly on low income users), who share the cost of subsidising the costs of the
Solar Feed-in Scheme. Recent delays in ETSA meter installation have also been an
area of concern.
The Council supports the principle of Governments taking appropriate steps to
encourage consumers who can afford to do so to engage with alternative, more
environmentally friendly methods of electricity generation.
In addition, the work of the Council has led it to the view that protection of solar
access for those consumers who have installed PV solar systems on their properties
represents a matter of some concern. The primary concern is the impact of new
development and placement of trees on neighbouring properties that could cause the
loss of enough sunlight to render systems either unproductive or inoperable.
The Council believes that the incentives offered by the State Government appear to
have been very successful to date and have resulted in increased numbers of
consumers installing these environmentally sustainable PV systems. It is therefore
considered by the members to be important that these consumers are able to have
security of access to adequate sunlight to run their systems effectively.
It is noted that recent initiatives and reforms to the planning and development system
have the potential to impact on the installation of solar technology in residential
properties and whilst there have been some improvements in protection for the rights
of owners of PV systems, the Council members are concerned that these
improvements do not go far enough.
The Council retains an interest in this subject and will continue to monitor possible
future impacts on consumers.
The work of the Council has involved extensive discussion on the subject of PV
systems, including their method of operation, pricing methodologies used by retailers
supplying the systems to consumers and GST implications for owners of such
systems. There has also been extensive discussion within the Council on the need
for easier access for consumers to relevant information in order to make an informed
choice regarding solar PV systems.
6.6.2
Wave Energy
Wave energy is one of the most environmentally benign ways to generate electricity,
with more predictability than solar and wind and higher power density.
It is an immense untapped resource – 2 terawatts, double the current world electricity
produced, could be produced from the oceans via wave power. It is estimated that
146,000MW’s of wave energy resource exists in Australia, almost triple Australia’s
total power capacity.
Energy Consumers’ Council 2011-2012 Annual Report
31
Areas of the Southern Ocean have the most wave energy. However, 80% of present
wave energy activities are based in the United Kingdom.
There are challenges to the commercial viability of the technology, however,
including:





regulatory and development issues
infrastructure issues
conflicts of use
funding availability
government policy
In October 2011 the Council received a presentation by Christian Gerlach of Wave
Rider Energy as an update on the topic of “Wave Energy.” The Council will continue
to monitor developments in this emerging technology.
In November 2011 the Minister joined Wave Rider Energy in launching a pilot wave
energy plant into the Port River where it will undergo a period of commissioning
before being towed to the Eyre Peninsula and installed just off Elliston. It is expected
that it will begin operating as part of a pilot project during July 2012. For the first year,
no energy will reach the shore as further testing is carried out. The company aims to
deploy a working demonstration plant of approximately 1 MW in 1-2 years with the
potential to power around 500 homes.
6.6.3
GreenPower
GreenPower is a voluntary government accredited program that enables energy
providers to purchase renewable energy on a consumer’s behalf, with the program
guaranteeing that the renewable energy purchased meets stringent environmental
standards.
The GreenPower program aims to:





facilitate installation of renewable energy generators across Australia beyond
mandatory requirements;
encourage growth in consumer demand for renewable energy;
provide consumer choice for, and increase confidence in, credible renewable
energy products,
increase consumer awareness of these products; and
decrease greenhouse gas emissions associated with electricity generation.
Consumers have a choice as to how much GreenPower they purchase, ranging from
10% to 100% of their energy requirements and costing from $1.00 to $5.50 per week.
The Commonwealth Government’s Department of Climate Change and Energy
Efficiency will factor in sales of GreenPower as additional to mandatory renewable
energy targets for the purpose of setting future carbon emissions caps.
In February 2012 the Council received a presentation on the GreenPower program
from Ruth Gill of the Energy Markets and Programs Division, DMITRE.
Energy Consumers’ Council 2011-2012 Annual Report
32
6.6.4
Alternative Fuels/ Electric Vehicles
Increasing concerns with climate change, urban air quality, fuel prices and energy
security issues has led to interest in the development of alternative fuels and
consideration of electric vehicles.
The South Australian Government itself is supportive of commercially viable, low
emissions alternative fuel sources and has implemented a range of initiatives and
support measures to this effect.
To help stimulate demand for biodiesel and Compressed Natural Gas (CNG), the
South Australian Government has obtained the agreement of the operators of the
metropolitan public transport bus fleet to use either biodiesel blends including B5 (5%
biodiesel) and B20 (20% biodiesel) for its diesel-fuelled metropolitan bus fleet or
CNG.
The South Australian Government has also provided funding for research and
development into second generation biofuel feedstocks. In conjunction with the
Commonwealth, the South Australian Government funds the South Australian
Research and Development Institute (SARDI) to undertake research initiatives into
developing plant feedstocks, such as mustard seed oil, and microalgal feedstocks to
produce biofuels and a range of high-value co-products and chemicals traditionally
synthesised from crude oil.
Electric vehicles are also being considered as part of a broader Low Emissions
Vehicle Strategy (LEVS) designed to provide a strategic approach to accelerating the
uptake of low emission vehicles in South Australia. The South Australian Government
recognises that electric vehicles may offer a range of economic and environmental
benefits that some consumers will be willing to pay for but that challenges still exist
that need to be addressed before their widespread application can be assured. The
main issue is how to manage their presence without affecting the security and stability
of the electricity network.
Accordingly, the South Australian Government is participating in the AEMC’s review
of energy market arrangements for electric vehicles and natural gas vehicles to
consider the key issues to be addressed to ensure energy markets can facilitate their
uptake.
Going forward, the South Australian Government supports working with Distribution
Network Service Providers to ensure suitable incentives are developed to drive
appropriate charging behaviour.
On 2 May 2012 the Council received a presentation from Dr Rocco Zito of the
University of South Australia on the subject of Alternative Fuels/ Electric Vehicles.
6.6.5
Energy Battery Storage
One of the characteristics of electricity supply is that the amount of electricity that can
be generated is relatively fixed over short periods of time, although demand for
electricity fluctuates throughout the day. Developing technology to store electrical
energy so it can be available to meet demand whenever needed would represent a
Energy Consumers’ Council 2011-2012 Annual Report
33
major breakthrough in electricity distribution. Helping to try and meet this goal,
electricity battery storage devices can manage the amount of power required to
supply customers at times when need is greatest, which is during peak load. These
devices can also help make renewable energy, whose power output cannot be
controlled by grid operators, smooth and dispatchable.
They can also balance microgrids to achieve a good match between generation and
load. Storage devices can provide frequency regulation to maintain the balance
between the network's load and power generated, and they can achieve a more
reliable power supply for high tech industrial facilities. Therefore new technology,
such as energy battery storage, has the potential to provide substantial improvements
to the electricity supply industry.
Of particular interest to the Council was the potential for Home Energy Storage
Systems to enable householders to self manage and load shift peak power demands,
reducing the pressure on peak pricing events. They also have the potential to
facilitate fast fills for electric vehicles in the home environment.
For remote area communities, a mini-grid would be able to be established by
combining a solar farm with battery storage technology to provide “base load”
renewable energy at a cost less than, or equal to, that from subsided diesel-powered
systems.
In June 2012 the Council received a presentation on the subject of Energy Battery
Storage from Richard Turner of Zen Energy Systems.
The Council will be monitoring the development of this emerging technology.
6.7 Retail Energy Price
As noted in section 4.1, from July 1, 2012, the average standing contract tariff
increased by approximately 18%.
The Council has been monitoring increases in retail energy prices and the
subsequent effect on consumers. It is the Council’s view that there is a need to
investigate further the contribution of peak usage to the overall costs of electricity to
consumers, particularly disadvantaged consumers, including those on low incomes
and in vulnerable circumstances.
The subject of ‘Fuel Poverty’ has been a key area of focus for the Council, including
possible means to provide assistance for those consumers who are experiencing
hardship as a result of high energy prices.
Energy Consumers’ Council 2011-2012 Annual Report
34
6.8
6.8.1
Wholesale Energy Price
MEU Proposed Rule Change
In 2010-11, The Council raised concerns over the potential ability of generators to
exercise market power and noted its support for action to prevent future exercise of
generator market power.
On 23 November 2010 the Major Energy Users (MEU) lodged a proposed Rule
Change request with the Australian Energy Market Commission (AEMC) to limit
generator market power in the NEM.
The Rule Change was submitted following a relatively high number of trading intervals
above $5,000/MWh in South Australia during the summers of 2007-08, 2008-09 and
2009-10 that resulted in high weighted average spot electricity prices in South
Australia for the period. The concern held by the MEU was that the high prices were
deliberately caused by some large generators using their market power to raise prices
during periods of high demand.
The Council has noted that:


the MEU submission is not limited to market power but also addresses
efficiency issues in the market;
the major concerns with the market relate to the existence of three large
energy retailers (and therefore, less competition), and vertical integration of
generation and retail.
The Council has also noted that the AER has expressed concerns about the exercise
of market power (particularly in South Australia) in a number of its more recent annual
reports on “State of the Energy Markets”.
The AEMC initiated an investigation as a result of the rule change proposal which
included a public forum, release of a Consultation Paper, a Directions Paper and a
Technical Paper in an endeavour to identify the size of the problem that the rule
change aims to fix.
In June 2012, the AEMC published a Draft Decision on the rule change proposal.
The draft decision observes that there was no exercise of substantial market power in
any of the four mainland NEM regions and that therefore there was no need to make
a rule change. Its draft decision adds that if there is a structural problem in a region,
that perhaps a rule change is not the appropriate approach to resolving such an
issue. The AEMC Draft Decision incorporates reports by two consultants providing
quantitative analysis as to the extent of any problem, NERA Economic Consulting
(NERA) and any impact on new entrant generation, Competition Economists Group
(CEG).
Deeper analysis of the AEMC documentation indicates that there may well be a
problem in South Australia. Despite the views stated in the Draft Decision and the
NERA report, the CEG report supports a view that there is a problem in Tasmania
and probably also in South Australia.
Energy Consumers’ Council 2011-2012 Annual Report
35
The Council is concerned at this outcome and it has previously identified that a letter
be sent to the Minister outlining the concerns of the Council. It has been identified
that those members of the Council that have followed the progress of the rule change
proposal throughout have provided views that the AEMC processes were unlikely to
sufficiently identify the scope of the problem, thereby raising concerns about the
outcome.
The Council has been informed that the MEU is not satisfied that the analysis by the
AEMC consultant, NERA, has been sufficiently rigorous to reach the conclusions
made by the AEMC, particularly for the South Australian region, and will provide a
comprehensive response to the draft decision.
It should also be noted that the AER is required to publish a report covering the
circumstances in which the spot price exceeds $5000/MWh. The report should
include a description of the significant contributing factors (including any withdrawal of
generation capacity and network availability) and an assessment of the impact of any
rebidding practices.
During the 2011-12 period, the AER did not record any such high priced event in
South Australia.
The Council remains keenly interested in this market issue and is continuing to
address the issue.
Energy Consumers’ Council 2011-2012 Annual Report
36
6.9
Presentations
The Council received presentations from the following organisations on various
issues, many of which are discussed earlier in this report:

Origin for an update on the Solar Cities Program;

Energy Division, DTEI to discuss the MEU’s Proposed Rule Change;

Wave Rider Energy for an update on Wave Power;

ETSA Utilities to provide information on Smart Grids/ Smart Meters;

Energy Markets and Programs Division; DMITRE for an overview of
‘GreenPower’;

Essential Services Commission of South Australia for an update on ESCOSA;

Small Business Commissioner to discuss Inset Networks;

University of South Australia for an overview of Alternative Fuels/ Electric
Vehicles; and

Zen Energy Systems to provide information on Energy Battery Storage.
Energy Consumers’ Council 2011-2012 Annual Report
37
7.
WORK PLAN FOR 2012-2013
The Council’s Work Plan identifies the key energy policy areas to be addressed in
2012-2013, as presented in Table 7-1. The Council will address specific issues within
these policy areas as appropriate and in conjunction with the Minister’s requirements.
Table 7-1: Energy Consumers’ Council 2012-2013 Work Plan
Customer Protections

National Energy Customer Framework (NECF)

Concessions

Retailer of Last Resort (RoLR)

Inset networks

Memorandum of Understanding (MOU)

Consumer Advocacy Panel

Performance of suppliers
Demand Side Management

Peak Demand

Smart Meters

Smart Grids

Direct Load Control (DLC)
Energy Efficiency

Monitor existing schemes and standards

Rebates

Renewable Energy Efficiency Scheme (REES)

Monitor building codes

Impacts on vulnerable customers

Landlords/ tenants
Energy Supplies

Gas security

Supply/ demand balance (reserve margins) for electricity

Transmission and interconnector capacity

Pipeline access arrangements
Fuel Poverty

MOU

REES Plan
Energy Consumers’ Council 2011-2012 Annual Report
38

Concessions

Product Innovation
Greenhouse Gas Abatement

Carbon pollution reduction mechanisms

Carbon price
Renewable Energy

Mandatory Renewable Energy Target (MRET)

Photovoltaic (PV), wind power, geothermal, wave, etc

Solar access

Solar Cities Project

GreenPower

Green Energy Hub
Retail Energy Price

Standing contract price determinations

Transmission and distribution price determinations

Competition

Interstate comparison of prices

Increasing price differentials for higher energy use

Impacts on vulnerable customers
Smart Grids
Transport Fuels

Security of supply

Alternative fuels (biofuels, electric vehicles, coal/gas to liquids)

Infrastructure requirements

Costs
Wholesale Energy Price

Competition (monopoly power)

Bidding and rebidding practices

Market models
Energy Consumers’ Council 2011-2012 Annual Report
39
APPENDICES
A.
ABBREVIATIONS
ACCC
AEMA
AEMC
AEMO
AER
AGL
CCGT
CEG
c/kWh
c/MJ
COAG
CPI
CPRS
DLC
DNSP
DSM
DTEI
DUOS
EDPD
EIO
ESAA
ESCOSA
ESIPC
FRC
MAPS
MCE
MCE SCO
MEU
MOU
MRET
MW
MWh
NAEEEP
NCC
NEC
NECA
NECF
NEL
Australian Competition and Consumer Commission
Australian Energy Market Agreement
Australian Energy Market Commission
Australian Energy Market Operator
Australian Energy Regulator
Australian Gas and Light Company
Combined Cycle Gas Turbine
Competition Economists Group
Cents per kilowatt hour (energy)
Cents per megajoule
Council of Australian Governments
Consumer Price Index
Carbon Pollution Reduction Scheme
Direct Load Control
Distribution Network Service Provider
Demand Side Management
Department for Transport, Energy and Infrastructure
Distribution Use of System
Electricity Distribution Price Determination
Energy Industry Ombudsman
Electricity Supply Association of Australia
Essential Services Commission of South Australia
Electricity Supply Industry Planning Council
Full Retail Contestability
Moomba to Adelaide Pipeline System
Ministerial Council on Energy
Ministerial Council on Energy Standing Committee of Officials
Major Energy Users
Memorandum of Understanding
Mandatory Renewable Energy Target
Megawatt (capacity)
Megawatt hour (energy)
National Appliance and Equipment Energy Efficiency Program
National Competition Council
National Electricity Code
National Electricity Code Administrator
National Energy Customer Framework
National Electricity Law
Energy Consumers’ Council 2011-2012 Annual Report
40
NEM
NEMMCO
NER
NERA
OCGT
PIRSA
PBF
REES
REMCo
RoLR
RPWG
SCER
SNC
TIPS
TNSP
TXU
TUOS
VOLL
WACC
National Electricity Market
National Electricity Market Management Company Ltd
National Electricity Rules
NERA Economic Consulting
Open Cycle Gas Turbine
Primary Industries and Resources SA
Public Benefit Fund
Residential Energy Efficiency Scheme
Retail Energy Market Company
Retailer of Last Resort
Retail Policy Working Group
Standing Council on Energy and Resources
Special Needs Sub-Committee
Torrens Island Power Station
Transmission Network Service Provider
Now TRUenergy
Transmission Use of System
Value of Lost Load
Weighted Average Cost of Capital
Energy Consumers’ Council 2011-2012 Annual Report
41
B.
ELECTRICITY INDUSTRY PARTICIPANTS AS AT 30 JUNE 2012
Generation
Scheduled and Semi-Scheduled
Generation:
Angaston
Brown Hill
Clements Gap
Dry Creek
Hallett
Hallett Hill
Ladbroke Grove
Lake Bonney 2
Lake Bonney 3
Mintaro
North Brown Hill
Northern
Osborne
The Bluff
Pelican Point
Torrens Island A
Playford
Torrens Island B
Port Lincoln
Quarantine
Snowtown 1
Snuggery
Main (>10MW) Non-Scheduled and Non-Scheduled Wind Generation:
Waterloo 1
Wattle Point
Lonsdale
Lake Bonney 1
Mt Millar
Starfish Hill
Canunda
Cathedral Rocks
Transmission
ElectraNet SA
Murraylink
Transmission
Company
Distribution
ETSA Utilities
Retail
Retailers for Domestic Customers:
Lumo Energy
AGL SA
Powerdirect
Alinta Energy
Aurora Energy
Momentum Energy
Origin Energy
Red Energy
Simply Energy
TRUenergy
Other SA Licensed Retailers:
Trustpower Australia
Australian Power and Gas
Dodo Power and Gas
EnergyAustralia
Flinders Power
Sanctuary Energy
TRUenergy Yallourn
Cogent Energy
Diamond Energy
ERM Power Retail
Market Management
National:
ACCC
AEMC
AER
SCER
AEMO
Energy Consumers’ Council 2011-2012 Annual Report
South Australia:
ESCOSA
42
C.
SUPPLY CAPACITY IN SOUTH AUSTRALIA
Existing Conventional Thermal Capacity in South Australia
Conventional generating capacity in South Australia currently consists of two subbituminous coal, three distillate, seven natural gas and two stations with dual-fuel
firing capability. The total installed name-plate capacity of the generating units in
South Australia is currently 3,625 MW, however, the actual realisable output will vary
depending on the weather conditions and plant availability. The name-plate ratings
and other details of the scheduled generators in South Australia are provided in Table
C-1.
Table C-1: Conventional Generating Capacity in
South Australia (Ref: ESOO 2011)
Power
Station
Operator
Installed
capacity
(MW)
Plant Type
Fuel
AGL Energy
Unit
Numbers
and
nameplate
capacity
(MW)
4x120
Torrens A
480
Steam sub-critical
Torrens B
AGL Energy
4x200
800
Steam sub-critical
Angaston
Infratil
30x1.67
50
Dry Creek
Synergen
Power
Synergen
Power
Pelican
Point Power
Synergen
Power
Synergen
Power
Origin
Energy
Flinders
Power
Origin
Energy
Flinders
Power
Origin
Energy
TRU Energy
3x52
156
Compression
reciprocating engine
OCGT
Natural
gas/fuel oil
Natural
gas/fuel oil
diesel
1x90
90
OCGT
Natural gas
2x160, 1x158
478
OCGT
Natural gas
2x25, 1x23.5
73.5
OCGT
diesel
3x21
63
OCGT
diesel
2x40
80
OCGT
Natural gas
2x265
530
Steam sub-critical
1x118
180
CCGT/cogeneration
Brown
coal/fuel oil
Natural gas
1x62
240
Steam sub-critical
4x60
224
OCGT
4x24, 1x128
180
OCGT
12 units
3624.5
Mintaro
Pelican Point
Port Lincoln
Snuggery
Ladbroke
Grove
Northern
Osborne
Playford
Quarantine
Hallett
TOTAL
Energy Consumers’ Council 2011-2012 Annual Report
Natural gas
Brown
coal/fuel oil
Natural gas
Natural
gas/diesel
43
Existing Wind Generating Capacity in South Australia
There are fifteen operating wind farms in South Australia with a combined capacity of
1,203 MW. The capacity of the existing wind turbines in South Australia are listed in
Table C-2 as provided by the Australian Energy Market Operator (AEMO) in their
South Australian Generation Information 2012.
The Council notes the concerns that have been expressed by industry bodies on the
recent level of wind generation expansion in the State. ESCOSA have introduced a
number of licence conditions aimed at preserving the security of the State’s power
system, while still allowing the construction of new wind farms.
Table C-2: Completed Wind Generation Projects (>10 MW) in South Australia
Energy Consumers’ Council 2011-2012 Annual Report
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D.
ORGANISATIONS
Business SA
Business SA (formerly known as the South Australian Employers’ Chamber of
Commerce and Industry) is the State’s leading business organisation and represents
thousands of businesses through direct membership and affiliated industry
associations. Business SA is the ‘voice of business’ in South Australia and advocates
on behalf of businesses to propose legislative reforms to continue to develop the
economy and increase sustainability in the State. It also plays a strong leadership
role within the South Australian business community and delivers a wide range of
integrated services to business, including: advocacy, association services, Australian
Apprenticeships Centre, education and training, environment, export facilitation,
human resources services, international business, networking, OHS/injury
management services, and workplace relations services.
Consumers Association of South Australia Inc
The Consumers Association of South Australia Inc (CSA) is a body that contributes to
the development of policies to ensure that the needs of ordinary consumers are taken
into account. It lobbies for consumer law reform and administration of consumer
protection laws.
COTA SA
COTA SA (COTA) is South Australia’s peak seniors organisation with an individual
membership of around 20,000 and over 200 seniors organisations members with a
combined membership of more than 60,000. In addition, COTA has around 80
associate members who are aged care providers, local government bodies, health
units and other service and educational institutions. Its membership networks and
programs are statewide.
Energy Consumers’ Coalition of SA
The Energy Consumers’ Coalition of SA (ECCSA) represents medium to large users
in South Australia, comprising companies including Adelaide Brighton Cement, One
Steel, Nystar and Kimberly Clarke, in all areas of energy costs. ECCSA is also
affiliated nationally with the MEU Inc., whose members also comprise, BOC,
Bluescope, Visy, International Hotel Group, SkyCity and Orica, who also have
operations in South Australia. By virtue of its activities, ECCSA ends up representing
the interests of the majority of, if not all, consumers in South Australia.
South Australian Chamber of Mines and Energy
The South Australian Chamber of Mines and Energy (SACOME) provides an
important interface between the resources industry, including the oil and gas sector
and acts as a collective resources industry voice to government, parliamentary
representatives and government agencies. It provides avenues by which the
resources industry, including the oil and gas sector, can work together to advance
and promote the sector and assists the government and the community to understand
the unique ability of the resources industry, including the oil and gas sector to shape
everyday lives and well being, and contribute to the growth and prosperity of South
Australia. SACOME supplies members with information relating to the resources
industry, including the oil and gas sector as well as networking and other
opportunities for industry people to come together as a collegiate.
South Australian Council of Social Service
Energy Consumers’ Council 2011-2012 Annual Report
45
The South Australian Council of Social Service (SACOSS) is the peak body for social
services in South Australia and works towards the vision of justice, opportunity, and
shared wealth for all South Australians. SACOSS advocates for and represents the
interests of low income and disadvantaged groups in South Australia. SACOSS is a
not for profit, independent organisation that has been advocating for better public
policy for over 60 years. SACOSS has close to 300 members who represent a wide
range of interests in law and justice, social welfare, health and community services.
South Australian Farmers Federation
The South Australian Farmers Federation (SAFF) is the State's principal farmer
organisation. It works in partnership with government departments, statutory
authorities, politicians, businesses, the media and its members to assist in the
development of the rural sector. Its aim is to assist South Australian Farmers achieve
sustainable profitability by providing representation, leadership and services to
members, and foster a unified voice to promote farming interests.
State Retailers Association of SA
The State Retailers Association of SA (SRA) has recently merged with Master
Grocers Australia (MGA). This merger has enabled the Association to continue to
fully represent and assist the smaller retailers but has also strengthened its position in
representing a wider variety of members, including franchisees, wholesaler/retailers
and the independently owned supermarkets including Foodland and IGA. The
MGA/SRA merger provides a wide range of services to its members including
advocacy, representation at wage cases, lobbying, and a wide range of business
services and information. It speaks for retailers and is their representative to
governments, media, landlords and the community in general.
The Property Council of Australia – SA Division
The Property Council of Australia – SA Division (Property Council) is the voice of the
property sector in South Australia. Its mission is to champion the interests of the
property sector by leveraging and promoting the importance of its members’
contribution to the state’s economy. It achieves this through the advocacy of
rigorously-researched policy that benefits members and the wider community. It also
works to keep the property sector informed, connected and competitive through high
quality networking and professional development events.
Local Government Association
The Local Government Association (LGA) is a membership organisation that provides
quality service and leadership relevant to the needs of member Councils.
Membership of the Association is voluntary and all Councils under the Local
Government Act are members along with Anangu Pitjantjatjara. Associate members
include Nepabunna Aboriginal Community, Gerard Aboriginal Community and the
Outback Areas Community Development Trust. The LGA is primarily funded by
member subscriptions and Councils receive many direct and indirect benefits as a
result of being a member of the Association. The LGA is recognised as the peak
representative body for Local Government in this State and prides itself on being the
Voice of Local Government South Australia. The Association provides leadership to
Councils and representation outwards to State and Federal Governments and other
key stakeholders.
Energy Consumers’ Council 2011-2012 Annual Report
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