|
Hey Reader, in today's edition:
- Pros and cons of a consumer duty
- Bankers get behind net zero
- Browse not so grouse
|
|
|
|
‘Seismic’ energy reform gains momentum
Australia's energy policymakers are edging closer to applying a consumer duty to energy providers as Australia’s boom in home batteries and other consumer energy resources helps build the case for more adaptive consumer protections.
The federal energy department has consultants investigating the idea, which already has support from the Australian Energy Regulator and ACCC, ahead of a directions paper expected next month as part of its Better Energy Customer Experiences work.
Such a duty would set expectations for energy providers to “act in the interests of consumers and ensure good consumer outcomes”. The reform needed to deliver it has been described by one in the sector as “seismic”. But it’s a discussion only likely to grow as Australia’s race to home batteries and looming new tariffs offering “free” power leave consumers perplexed and in some cases worse off as the system changes rapidly.
|
Expert view
" There are laws that apply to quite a lot of the problems: there are laws that say you can't mislead people, for example, and laws that say that products have to be fit for purpose and of acceptable quality. But the energy market is probably more like a financial services market than a market for say shoes, and that's because it's really complicated and hard to understand.
In the case of consumer energy resources, it's really new and it's complicated. As we know from studies and behavioural economics, people are poor decision makers when faced with a lot of complexity and choice.
What a consumer duty says is this market is really hard for individuals, and so we need to move the onus to the experts. And the experts are the people who are providing the products.
|
Jeannie Marie Paterson
Professor of Consumer Protection and Technology Law, University of Melbourne
|
|
Banking on net zero
Bank bosses have told federal parliament to call a truce on energy policy and focus on getting more projects approved — both gas and renewable.
In testimony to the Economics Committee, lending heavyweights ANZ (ASX: ANZ) and NAB (ASX: NAB) reaffirmed their commitment to net zero by 2050 just days after the Opposition abandoned Australia’s bi-partisan stance on the policy.
“It needs consensus. It needs agreement on how you are going to transition the economy into the future and certainly it’s in the best interest of the Australian economy, as it is in all economies, to reduce and contain energy costs.”
ANZ CEO Nuno Matos
“Australia should be an energy superpower. We are blessed with incredible amounts of sunshine, with incredible amounts of wind resources, with some hydro capacity, and one of the world’s largest reservoirs of natural gas. So the fact that we are in a situation where we have a possible issue with a supply and demand imbalance on energy is sad and shouldn’t have happened … We need to be focusing much more of our time and energy on getting resource and energy projects approved.”
NAB CEO Andrew Irvine
“There is plenty of global capital that would love to fund Australian gas extraction,” Irvine told the hearing, pointing to Japan and South Korea as examples.
He said NAB does not fund gas extraction for export because that would be contrary to Australia’s Paris commitments and net zero target, but has “significant capacity” to lend to gas for the domestic market.
While promoting its target of $100 billion of lending into renewable and social investments by 2030, and providing an update as “the leading bank in this space in Australia” at $84 billion, ANZ has been criticised by organisations such as Market Forces for also bankrolling the expansion of fossil fuels.
|
Browse not so grouse
Woodside Energy (ASX: WDS) may have secured approvals for the extension to its North West Shelf (NWS) gas factory out to 2070 but development of the feeder Browse field is looking increasingly shaky, according to an independent energy think tank.
Browse, Australia’s largest untapped conventional gas resource, is intended to backfill the NWS as supply from existing fields declines. But cost makes it uncompetitive for domestic supply and more expensive for Asian customers than rival producer Qatar, IEEFA’s Lead Analyst, Australian Gas, Joshua Runciman said.
Further, LNG markets are hurtling towards a supply glut — if all US projects come online under the “Drill Baby Drill” policy — that is expected to depress prices and intensify competition.
For the domestic market, IEEFA estimated it would cost about A$9/GJ to deliver Browse gas to Perth — about four times higher than the current average production cost of domestic gas in Western Australia, and above current WA gas spot prices. With major industrial users already scaling back, this means Browse gas could potentially place upward pressure on WA gas prices above the levels the Australian Energy Market Operator (AEMO) has anticipated will induce “demand destruction”.
The requirement for emissions abatement from day one could also undermine the $30 billion project with investors, according to Runciman. But Woodside has scored an initial win with the Browse project, as the WA Environmental Protection Authority this week opted to let the feds be the sole arbiter of the carbon capture and storage (CCS) aspect which proposes to sequester up to 14,200 tonnes of carbon dioxide per day.
Meanwhile gas market tweaks for the east coast are due as soon as next month.
|
|
|
|
 Projects
|
Vulcan Energy (ASX: VUL) was upbeat about drilling performance and positive subsurface results in the Phase One Lionheart project in Germany, which CEO Cris Moreno said further de-risk the project, reinforcing Vulcan’s leadership in the sustainable development of lithium and renewable heat resources in Europe.
The recipients of the second round of the Community Energy Upgrades Fund has been announced from the Federal Government. Sixty-six local governments across Australia will receive $50 million in grants to allow energy efficiency and electrification upgrades to community facilities, including 33 upgrades to aquatic centres and 10 grants for smart electric vehicle charging infrastructure.
Policy
|
“We need to step on the gas,” Opposition Leader Sussan Ley told reporters, pledging to include the fossil fuel in their capacity scheme and implement an East Coast Gas Reservation Scheme as part of their “technology-neutral” energy plan.
The Tasmanian Government established a Bell Bay Response Team to keep the lights on in the industrial zone with members due to meet next month, including George Town Council Mayor Greg Keiser, Tasmanian Minerals, Manufacturing and Energy Council CEO Ray Mostogl, Bell Bay Advanced Manufacturing Zone CEO Susie Bower, George Town Chamber of Commerce President Simone Lowe, Launceston Chamber of Commerce CEO Alina Bain, Northern Tasmania Development Corporation CEO Chris Griffin, and Regional Development Australia CEO James McKee.
Regulation
|
Victoria’s Essential Services Commission said new energy rules will tackle tricky “same name, different price” plans. “We expect retailers to design systems and publish new offers that clearly identify different plans, making it easier for customers to switch,” Commissioner Gerard Brody warned.
Two major steel industry associations in China and Europe have signed onto landmark agreements with the Australian nonprofit ResponsibleSteel to set internationally coherent standards for what qualifies as green steel. Together, the three organisations represent around 60% of global steel production. (Canary)
Technology
|
Green hydrogen could be cheaper to produce, less dangerous to store, and power a long list of environmentally friendly projects if it is turned into a material rather than a gas, according to Sydney start-up SolidHydrogen. (AAP)
Six groups will be featured at the annual ARENA Renewables Startup Showcase, which is designed to play a critical role in turning ideas into commercial outcomes. The startups include Totex Energy’s AI-powered, all-in-one home energy system with real-time arbitrage and forecasting to lower costs and emissions, Good Heat and its advanced heat batteries and smart energy management to replace industrial-scale fossil-fuel boilers, and Stralis Aircraft’s hydrogen-electric propulsion systems for next-generation aircraft.
Climate
|
Renewable energy and environment advocates said mixed messages from Australia were bolstering Türkiye’s otherwise weak bid to host next year’s UN climate summit, as they urged the Albanese government to stay the course with its bid. Arthur Wyns, a University of Melbourne research fellow, said if Türkiye did not budge, Australia could push for the pre-COP leaders summit to be hosted in the Pacific with Germany as default host. (AFR)
Brazil is pushing for an early COP30 climate deal, including an implementation roadmap for the transition away from fossil fuels that has been gaining momentum, although divisions persist on finance and emissions reductions, Reuters reported.
“This is a global coalition with Global North and Global South countries coming together and saying with one voice: this is an issue which cannot be swept under the carpet,” Edward Miliband, UK Secretary of State for Energy and Climate Change, told reporters. “We have an opportunity to make COP30 the moment we take forward what we agreed at COP28. The actions we are taking in the UK not to issue new oil and gas licenses is about climate, energy security and costs. The more secure option for us is cheap, clean renewables. We prioritise this not because it is easy, but because it is hard … and we are saying very clearly it must be at the heart of this COP.”
Speaking from Belém, Simon Bradshaw, COP31 Lead at Greenpeace Australia Pacific, asked where was Australia when the 60-plus group of countries stood up for the roadmap? “As the aspiring COP31 host, Australia is yet to publicly join the growing call for a roadmap to transition away from fossil fuels. This is not what climate leadership and accountability looks like,” he said.
People
|
ANU Professor Jamie Pittock was appointed chair of the Wentworth Group board of directors.
|
|
|
|
What's On
November 20
2026 ACCU Review
Climate Change Authority Deputy CEO Eliza Murray, General Manager Mia Swainson, and Manager Gavin Mongan will speak at a webinar on the authority’s upcoming review of the Australian Carbon Credit Unit (ACCU) Scheme.
November 25
The NEM Review and Firming up the Transition
NEM Review Chair Tim Nelson, CEFC CEO Ian Learmonth, Transgrid CFO Nadine Lennie, and AEMO Executive GM Violette Mouchaileh will speak at this CEDA event in Sydney.
November 26
National Press Club
Deputy Opposition Leader and former energy spokesman Ted O’Brien will address the National Press Club at this event in Canberra.
November 26
Efficient Electric Homes: Market Acceleration Summit
Architect Adrian Joyce, Secretary General of EuroACE - Energy Efficient Buildings, and the Director of the Renovate Europe Campaign, Clare McLaughlin, Head of Division, Energy Performance, at the Department of Climate Change, Energy, the Environment and Water, Grace Tam, Head of Consumer Finance at the Clean Energy Finance Corporation, and Energy Efficiency CEO Luke Menzel will speak at this Sydney event.
December 5
Keeping the lights on - syncons vs batteries
Mark Twidell, Industry Professor of Practice at the UNSW Energy Institute, and Transgrid Executive General Manager of Network Jason Krstanoski will speak at this webinar from The Energy, moderated by UNSW Energy Institute CEO Dani Alexander.
December 9, Sydney and December 11, Melbourne
Energy Tetris
The Energy’s first live event will feature Quinbrook CEO Brian Restall, Energy Security Corporation CEO Paul Peters, Southerly Ten Chief Development Officer Erin Coldham, CS Energy Head of Policy & Regulation Alison Demaria, Atmos Renewables GM of Development Allison Hawke, ASL GM System Planning & Financial Markets, Melanie Koerner, UNSW Senior Research Associate Dylan McConnell and Energy Edge MD Josh Stabler, with more speakers to be confirmed soon.
|
|
|
|