A gas access arrangement is required for every gas pipeline that is subject to regulation by the Australian Energy Regulator or the Economic Regulation Authority for Western Australian Pipelines. The access arrangements sets out charges, terms and conditions for access to gas pipelines and must be approved by the relevant regulation authority.
Australian Energy Statistics.
Services that ensure the reliability and safety of the electricity supply system. Electricity market operators purchase ancillary services to control frequency and maintain system voltage within precisely specified limits during sudden and unexpected changes in supply or demand, and to allow for ‘black start’ in the unlikely event of total system failure. Market rules allow users to provide ancillary services, but most of these services must be provided at extremely short notice (within seconds) or are otherwise beyond the capability of end users’ installations. The cost of ancillary services is passed to energy retailers by the market operator and recovered from end users through a component of their retail energy bills.
Australian and New Zealand Standard Industry Classification.
Authorised Maximum Daily Quantity
The maximum level of gas transmission capacity that Victorian network operators will supply without imposing penalties when there is high demand and it is necessary to inject additional gas into the system.
Bagasse is the fibrous matter that remains after sugarcane or sorghum stalks are crushed to extract their juice. It is currently used as a biofuel and as a renewable resource in the manufacture of pulp and paper products and building materials.
A base load generator provides power at a more-or-less constant output level to the electricity system outside of temporary shut down for maintenance. In Australia, brown or black coal generation plants provide base load power. Base load generation can be contrasted to flexible generation, typically hydro or gas-fired generation in Australia (although some coal plant capacity can perform this function) which varies in response to the level of demand. Base load generation can also be contrasted against intermittent generation, which is available only when the underlying renewable resource is available (e.g. when the wind is blowing). See also Intermittent Generation.
Black liquor is the spent cooking liquor from the kraft process when digesting pulpwood into paper pulp removing lignin, hemicelluloses and other extractives from the wood to free the cellulose fibers.
Facilities whose operation have a fundamental bearing on the financial position or reputation of the relevant business.
Events where surplus or additional capacity is made available through an auction process. Capacity auctions take place in the Victorian Wholesale Gas Market to enable end users to adjust their Average Maximum Daily Quantity levels. Capacity auctions are also used in the Western Australian Wholesale Electricity Market, where the Independent Market Operator purchases capacity to ensure that peak demand can be safely met. This occurs where those who purchase electricity have not secured sufficient capacity credits under all forecast circumstances.
In the Western Australian Wholesale electricity market, capacity credits are tradable certificates that Market Customers must purchase to ensure there is sufficient capacity to meet their actual peak demand.
Causer Pays Principle
A generic principle that allows for the efficient and equitable allocation of costs to parties that cause the cost to be incurred in the first instance. Alternative terms with slightly different meanings are the Beneficiary Pays Principle (where those who benefit initially bear the costs) and the User Pays Principle (where end users ultimately bear all the costs incurred in providing the services they use).
Refers to a situation where customers are legally entitled to choose their energy retailer.
A form of gas market design where gas shippers and pipeline owners secure pipeline capacity through bilateral contracts. The differences between contracted and actual capacity are dealt with under the terms and conditions of the contract. See also Market Carriage and Market Design.
Contract for Difference
A financial hedging arrangement, where two parties agree to trade a certain volume of a product for a set price. These parties do not physically exchange this product in the ‘hedge market’. The product is purchased in a separate ‘physical market’ (e.g. a wholesale electricity ‘spot market’). If the price is higher or lower than the agreed price, then the parties settle the difference between the ‘hedge contract’ and ‘physical market’ prices. See also Electricity Futures Contract and Spot Market.
Contract maximum demand
The maximum level of demand specified in a network connection agreement or energy supply contract, for which a distribution network service provider will levy a charge. The charge is linked to an increment of network system capacity or load (demand). Penalties may apply should the end user exceed this maximum demand, and the distribution network service provider may increase the contract maximum demand for a forthcoming period of up to 12 months.
An approach that seeks to align tariff prices with an estimate of actual costs attributed to particular tariff components. There is no uniformly accepted methodology for achieving this objective, although the National Electricity Rules and National Gas Rules specify general pricing principles for network service tariffs that reflect generally accepted attributes of the approach.
Customer Load Variation Charge
A premium to the wholesale electricity price that retailers charge end users. The magnitude of this premium depends on the variability and predictability of an end user’s demand profile over time. All else being equal, retailers will charge end users more where they have a more variable and a more volatile (i.e. less predictable) load profile.
A mechanism where end users can benefit by changing their consumption in response to real-time electricity prices or short-term network constraints. Depending on how end users set up their demand-side response, it can provide them with additional revenue or a saving on their electricity bill that is substantially more than the cost of providing demand-side response.
Direct greenhouse gas emissions
The National Greenhouse Accounts (NGA) Factors handbook refer to these as emissions emitted per unit of activity (in kilograms of carbon dioxide equivalent – CO2-e) at the point of emission release (i.e. fuel use, energy use, manufacturing process activity, mining activity, on-site waste disposal, etc.).