Selectricity Energy Markets

The Energy Markets
Large Energy users with energy supply contracts expiring now will face a unique challenge from the current energy market. Particularly if your contract was negotiated in mid 97, 98 or 99, you may find the energy market has risen substantially since last buying power. This is because various political, seasonal and financial issues have influenced, and continue to shape the developing national energy market. We believe that this year is shaping up to be one of the most eventful years in the competitive energy market's short history, and one where the buyer, more than ever, should beware.

First, take the millions of home users to be introduced to competition over the next 12 to 24 months. Will this new market tranche reduce or increase market pricing?

Then add small businesses, now contestable for the first time, and grappling with confusing energy quotes & promised "savings".

Consider the shortfall in available power generation in both Victorian and South
Australia, and the constrained interstate link that restricts power flows between them. Will the planned Basslink power cable between Victoria and Tasmania ease this pressure and enhance competition?

Then add the recent government review and changes to regulated Victorian Distribution prices and the ongoing developments in the NSW and Queensland energy markets.

Add the relatively new competitive Gas market and the new duel-fuel suppliers now offering both electricity and gas. And consider the increase in the maximum market price (VoLL) that is planned for 2002.
When considering all these factors, Selectricity is confident of but one thing in the maturing energy market: UNCERTAINTY.

Thinking companies should now be asking themselves serious questions:

What exactly is a competitive energy rate?
When should I negotiate?
For how long should I lock in?
What "risk-share" deals are available?
Are they worth the risk?
Who should I buy from?
Do they provide service?
Do I value service, or just a commodity?
Will my supplier be reliable?
Is there anything about my business that could offer value to an energy retailer?
Do we operate unique energy technologies?
Can we leverage off other business relationships with energy companies?
Do I need advice with energy management?
Am I on the best Network Tariff?
Are my bills correct?
How would I know?

Selectricity can help you evaluate these questions and develop an informed energy purchasing strategy. Because we are consistently tendering energy contracts, we can provide independent advice on current and historical energy pricing. Whilst we cannot predict the future, we can help you understand the risks of what is now a very unique and specialised field.

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