On 30 August the Australian Energy Regulator (AER) released its Draft Rate of Return Guidelines. The AER is responsible for setting the regulated tariffs charged by gas and electricity networks in eastern and southern Australia.
A key element in the process of setting regulated tariffs is the determination of the rate of return that the networks are allowed to earn on their regulated assets. In December 2012, following recent changes to Australia’s electricity and gas rules, the AER launched its Better Regulation programme, which is designed to improve the AER’s approach to regulation. As part of the programme, the AER will publish guidelines on its approach to determining the rate of return for energy networks in mid December 2013. The AER has invited interested parties to comment on the Draft Rate of Return Guidelines by 11 October.
Frontier Economics (Australia) advised the AER on certain aspects of its Draft Rate of Return Guidelines.
For more information, please contact Marita O’Keeffe at m.okeeffe@frontier-economics.com.au or call on +61 (0)3 9620 4488.
The Australian Competition and Consumer Commission (ACCC) today announced it would allow Woolworths to acquire three Supa IGA supermarkets in Queensland. The ACCC concluded that this acquisition would not lessen competition in either the local or statewide markets.
Frontier (Australia) advised lawyers for Woolworths in their submissions to the ACCC on this matter.
For more information, please contact Marita O’Keeffe at m.okeeffe@frontier-economics.com.au or Richard York at richard.york@frontier-economics.com.au, or call on +61 (0)3 9620 4488.
The Australian Government’s recently announced carbon pricing scheme – based on a cap and trade system – has divided the main political parties and the community. The looming federal election (scheduled for 7 September 2013) will again be largely fought over which party has the best policy for meeting Australia’s 2020 greenhouse gas reduction target (which has bipartisan political support for 5% reductions below 2000 levels).
Much of the policy debate in Australia has supported a cap and trade scheme – seen as necessary (and some believe sufficient) to achieve Australia’s emission reductions target.
The debate needs to consider the likely effectiveness of the Australian Government’s carbon pricing scheme in terms of its contribution towards reducing greenhouse gas emissions given current policy and market settings. This paper examines this issue, particularly in light of changed market and policy conditions.DOWNLOAD FULL PUBLICATION
The Australian carbon pricing scheme, based on a cap and trade system, has divided the main political parties and the community. Australia has a target to reduce greenhouse gas emissions by five per cent below 2000 levels by 2020. But the parties are divided on the best policy to achieve this target. The issue will have a high profile in the run up to the federal election which takes place next month.
This paper from Frontier (Australia) examines some facts around the likely effectiveness of the Australian Government’s carbon pricing scheme, in terms of its contribution towards reducing greenhouse gas emissions. Frontier finds that the Australian Government’s carbon price is likely to result in only a small reduction in electricity sector greenhouse gas emissions, and considerably less than expected in 2011.
For more information, please contact Marita O’Keeffe at m.okeeffe@frontier-economics.com.au or call on +61 (0)3 9620 4488.
On 8 May 2013 the then Minister for Climate Change, the Hon Greg Combet declared that “…. the carbon price mechanism that the Government has implemented is working. It is doing what it was intended to do and that is to cut our greenhouse gas emissions. In fact, the data from the independent agencies demonstrates that emissions in the National Electricity Market fell by 7.7 per cent in the first nine months of carbon pricing”.DOWNLOAD FULL PUBLICATION
A key issue in the coming Australian federal election is how best to manage the achievement of the greenhouse gas reduction target. The Australian Government is claiming that a 7.7% drop in CO2 emissions is evidence that their carbon price scheme, implemented in mid-2012, is working. Electricity generation is a complex industry and many factors contribute to the level of emissions. In this new client briefing from Frontier (Australia), we investigate the Government's claim and examine the hard figures to see whether it holds up to scrutiny.
For more information, please contact Marita O’Keeffe at m.okeeffe@frontier-economics.com.au or call on +61 (0)3 9620 4488.
