The message from energy market analysts to manufacturers? Get used to higher prices. At least, that was the view of four analysts at the National Energy Summit on October 10. While there was disagreement as to exactly how much energy, and in particular, gas, will cost, there was unanimity on the fact that prices will … Continue reading Manufacturers need to confront high energy prices: analysts
Deloitte has released a new report highlighting how innovation in the energy sector is not just coming from the supply side, but instead, from those who use energy. Noting that “communities and consumers, large and small, are taking charge of their own energy”, the report outlines how these groups are driving change. Responding to this … Continue reading Consumers driving energy change: Deloitte
The Council of Australian Governments (COAG) Energy Council, comprising state and territory energy ministers, headed by Federal Energy Minister Josh Frydenberg, is meeting today to decide whether the proposed National Energy Guarantee (NEG) proceeds to a final policy design in August or not. Proposed by the Energy Security Board in October 2017, the National Energy Guarantee looks to encourage new investment … Continue reading COAG to decide final direction of NEG today
From July 1, South Australia will surpass Denmark as having the most expensive power in the world. Energy companies AGL, EnergyAustralia and Origin Energy will all be increasing their electricity prices this Saturday. On average, AGL will be increasing its prices by 18 per cent, EnergyAustralia by 19.9 per cent, and Origin Energy by 16.1 … Continue reading SA power prices to become world’s most expensive
Adelaide recycling business Plastics Granulating Services (PGS) has been forced to close due to power bill increases of $100,000 over the past 18 months. According to managing director Stephen Scherer, 35 jobs were lost as a result of the closure. The facility, which processed 10,000 tonnes of plastic waste, was the only recycling service of … Continue reading SA plastic recycling facility shut due to power prices
Australian chief scientist Alan Finkel will today profess his support for a clean energy target, which he believes will have the lowest impact on power prices compared to other schemes. According to Finkel, doing nothing about climate change will end up being the most expensive option. He will be recommending that the operators of all large … Continue reading Alan Finkel warns over lack of action on climate
Australia’s biggest manufacturer, steel giant BlueScope, has controversially backed a clean energy target for the energy sector. It is unreasonable to favour the provision of affordable and reliable energy over reducing carbon emissions, according to BlueScope chief executive Paul O’Malley. Therefore, he has called for politicians to get behind a clean energy target as a … Continue reading Australia’s biggest manufacturer backs clean energy target
Townsville has been highlighted as a potential manufacturing hub, particularly for solar panels and renewable energy projects. At a recent Business Advisory Council meeting of the Palaszczuk government, council member Neil O’Sullivan from Noja Power Switchgear brought up the idea. “Manufacturing and in particular advancement in manufacturing… perhaps that should be looked at in Townsville,” … Continue reading Townsville’s potential as a manufacturing hub
Telstra has reportedly seen its power costs increase by $100 million in the past year, with a senior executive calling on Industry Minister Arthur Sinodinos for urgent action to address Australia’s energy crisis. This follows a recent decision by the Federal Court to increase NSW electricity prices by $3 billion over the next few years, on … Continue reading Telstra’s power costs up $100m; company calls for price correction
Australian industrial gas users are seeing prices doubling – if they can get contracts at all – with the next two years cited by Manufacturing Australia as a “crunch point” for customers.
AGL has been warned that an unreasonable deal on power for the troubled Alcoa Portland smelter could hurt the power company’s reputation, with a decision on the future of the aluminium plant expected to come in the next fortnight.
The Portland aluminium smelter would be at a heightened risk of closure if the Hazelwood power station shut, an outcome which may be decided next month.
Electricity is a major cost for many manufacturers and a business-critical requirement for all. Price and reliability matter. And right now both seem to be under a cloud. In South Australia, contract prices have been increasing sharply, and short-term spot prices reached extraordinary highs in July.
Australian manufacturers are facing ever-escalating prices for gas. In 2016, local spot gas prices have gone from being substantially less than those in Japan to being substantially more. Spot prices will put pressure on contract prices.
The NSW and Victorian governments are considering action – including dropping current moratoriums on exploration – to deal with the east coast gas shortage.
Australian industrial customers have seen gas prices nearly double and these are expecting to worsen, with the possibility of shortages, while the commodity is being exported at cheap prices to Asian customers.
The ACCC’s chairman has raised concerns about Royal Dutch Shell’s $70 billion takeover of BG Group worsening east coast gas availability and prices.
LNG exports will displace iron ore as Australia’s major export in coming years, but domestic prices will rise steeply and will harm industrial users, according to a new ANZ report.
Santos and Alcoa have today announced a five-year contract for natural gas supply, starting in 2018 and worth 82 petajoules over five years.
Manufacturing Australia has said that the transition to exports from large-scale LNG developments on the east coast could be “devastating” for industry.