Data and other information is available about energy markets, which can help you in your procurement processes.
Why tracking energy market developments is important
Keeping informed about energy market developments requires consideration of a vast amount of information. This can be challenging, but can also be beneficial because it may:
- provide a guide for the most appropriate time to negotiate and enter into energy contracts
- inform your negotiating position when dealing with retailers
- affect the optimal duration for your retail energy supply contract
- be incorporated into your businesses budgeting process
- inform steps that you can take to reduce costs, such as improving energy efficiency or developing demand-side responses.
Useful information to monitor includes:
- movements in energy prices, changes in fuel prices or the tightening of supply capacity
- changes in network and ancillary services charges
- new regulatory arrangements which may have an impact on energy prices
Sources of information
- the price of your current energy procurement contracts
- wholesale spot price information published on the Australian Energy Market Operator website and similar information published on the Western Australian Independent Market Operator website for the Western Australian electricity and gas markets.
- electricity futures contract price information published on the ASX website.
Industry Case Study – Amcor – Using data in procurement decisions
Understanding the drivers of the energy market helps you judge if the energy price listed on your bill is fair and reasonable, and will help you improve the price you can negotiate. Many companies track developments in energy markets by monitoring absolute price levels and the degree of price volatility in the wholesale market over time. They aim to make their procurement decisions at a time when they believe electricity is trading cheaper than what it is likely to trade at in the future.
For example, Amcor uses forward pricing information to trigger a request to retailers for a supply contract.
Being able to do this requires Amcor to:
- track energy prices using wholesale market spot price data from the AEMO website (or third party sites) which is particularly useful for demand-side response, and energy futures contract price information from d-cyphaTrade and forward pricing information provided by several of their retailers; and
- monitor load profiles for all major sites using half hourly metered data provided by a Metering Services Provider.
If the comparison between retail price and market prices is reasonable, Amcor accepts the offer.
Both AEMO and the Australian Energy Regulator (AER) publish daily, weekly and longer-term reports on the performance of the electricity and gas markets. These reports include:
- Australian Energy Regulator - Market Reports
- Australian Energy Regulator
The Australian Energy Regulator publishes daily, weekly and longer term reports on the performance of the electricity and gas markets.
These include summaries of the wholesale spot market and electricity futures contract prices and the annual State of the Energy Market Report.
- Australian Energy Market Operator - Price and Demand Information (Opens in a new window)
- Australian Energy Market Operator
The Australian Energy Market Operator (AEMO) publishes price and demand information of real time trading (30 minute) and dispatch (5 minute) price and demand data. Information is provided for each region in daily, weekly, monthly and annual formats. Some graph data is downloadable in simple csv file format.
AEMO also publishes an annual Statement of Opportunities Report which provides a 10-year forward look at expected conditions in the gas and electricity markets.