SA NETWORK TARIFF CHANGE
There have been recent network tariff changes for SA Power Networks (SAPN), providing customers more flexibility and options with a range of network tariffs, allowing for better management of energy costs.
There are two types of demand charges in SAPN for both Low Voltage and High Voltage network tariffs sites:
Anytime Demand – This is any half hour period outside of the Annual 12 month demand period.
Peak Demand – This is read during the months of Nov-Mar. By obtaining the highest 6-hour (5pm-9pm 7days/week) daily average for CBD and 4-hour (11am-5pm Workdays) daily average for CBD. Peak Demand charge is an incentive for customers to actively manage their demand during periods applicable to their sites. There are two billing options: monthly and annual.
Monthly Peak Demand – only charged during the months of Nov-Mar. This means that months of Apr-Oct bills will be cheaper with the absence of the Peak Demand charge but come Nov-Mar it will be significantly higher rates.
Annual Peak Demand - cost of the peak demand is spread out across 12 months, for the demand values that was read during the months of Nov-Mar.
We can assist SA customers in determining which option is more suitable for your business. Analysing your data will allow us to obtain the most favourable outcome and to better manage your energy costs. Contact us for further information or assistance.
NATURAL GAS UPDATE
In late June/early July 2021, wholesale gas prices experienced significant volatility across all east coast gas hubs primarily due to colder weather, partial outages at the Longford gas plant in VIC, reallocation of QLD gas into local gas generation following the explosion at Callide power station and sustained export demand for Liquefied Natural Gas (LNG).
However, this was a temporary situation and prices have since recovered after the main underlying issues were resolved. Although this recent volatility has affected the average wholesale gas price for the year, the outlook for Q4 2021 wholesale gas prices remains much lower at around $7-8/GJ.
Nevertheless, the long-term gas supply outlook for the east coast (2022–2032) remains uncertain and there has been a slight tightening in the near to medium term. The southern states (VIC & SA) face a potential 30 Petajoule supply shortfall as early as 2024 and southern gas production is expected to lag demand by 113 Petajoules the same year. Unless an LNG import terminal or more speculative domestic sources of supply are developed to meet production forecasts, this will likely become a reality. Whilst the proposed LNG import terminal at Port Kembla NSW expects first flow of gas to occur in early 2023, the project is yet to take a final investment decision.
Over the past couple weeks, TTEG has observed a growing up-tick in retail gas prices for calendar years 2022 to 2025 on the east coast despite relatively stable prices in the gas spot markets. With mid to long-term domestic supply uncertainty still a concern along with rising international oil & LNG prices, it would be no surprise to see this trend continue for some time.
The WA Gas market is definitely on the rise as well, mainly driven by the cost of upstream gas going up. Upstream providers only have to supply a small % of gas to the domestic market so the rest is being reserved to get a higher cost from local retailers or ship offshore as LNG. While commodity prices were between $4-5/GJ only 12 months ago, we are now up to $7-9/GJ depending on the contracting years. Gas will continue to rise as supply tightens up pushing commodity prices up.
SOLAR ROOFTOP PV
"The Australian Energy Market Operator (AEMO) is introducing a new market notification framework to increase transparency on actions taken to maintain power system security during challenging system operating conditions coupled with high rooftop solar photovoltaic (PV) exports. In continuing to support increasing levels of rooftop solar PV, AEMO’s new protocol foreshadows challenging operational conditions, seeks a market-based response, and communicates actions needed to maintain system security. AEMO Chief Operations Officer, Michael Gatt, said “the market notification framework responds to stakeholder feedback for improved transparency and supports longer-term industry solutions to better utilise rooftop solar PV and flexible load.” - WATT CLARITY