As a generator or intending generator, building a new power station involves assessment of risk and return over many decades.  As a retailer, or intending retailer, there are many functions and systems to manage, and the risks of the spot market to assess, mitigate or hedge.  With our long experience and in-depth knowledge of the electricity and gas markets, Energy Link can assist in many of these areas.

Generator strategy needs to consider:

  • Consenting, construction and operating costs
  • Optimum sizing of plant including staging of construction
  • Fuel contracts
  • Emissions and impact of the Emissions Trading Scheme
  • Valuation
  • Price path scenarios and risks
  • Power purchase agreements or hedging strategy
  • Market rules and levies
  • Clearing and settlement
  • Offer strategy
  • Ability to offer instantaneous reserves
  • Whether to embed or connect to the transmission grid
  • Assessment of transmission constraints that could impact on operations
  • Impact of new generation on local prices
  • Impact of transmission and line charges

Reatiler strategy needs to consider:

  • Whether to buy direct from the spot market or another retailer
  • Prudential requirements for spot purchases
  • Payment for spot purchases, frequency keeping, constrained on, and other market services
  • Metering
  • Reconciliation of spot purchases, along with the relevant certification
  • Risk management including hedging spot price risk, and margin management
  • Use of system agreements with lines companies
  • Payment of line charges
  • Registry data for connection, reconnection, disconnection and switching of customers
  • Physical connection, reconnection and disconnection of customers
  • Access to property (for metering)
  • Customer support – faults, call centres or support by email
  • Pricing plans design, maintenance and publication
  • Sales and marketing to attract new customers and retain existing customers
  • Billing and payments processing
  • Information systems
  • Complaint resolution
  • EA levies
  • Other internal and miscellaneous functions
  • Electricity information exchange protocols (EIEPs) for data interchange with service providers
  • Collection of bad debts
  • Medically dependent consumers
  • Monitoring & managing compliance with the Code
  • Managing the low user tariff regulations which require retailers and lines companies to minimise fixed charges to residential consumers with below average consumption at their primary place of residence