Research and Insights 2019
Reports and Working Papers
Ensuring reliable electricity supply in Victoria to 2028: suggested policy changes
A Report by VEPC Director, Bruce Mountain, and Dr Steven Percy, Research Fellow, VEPC • November 2019
Ensuring reliable electricity supply in Victoria to 2028: suggested policy changes looks at whether markets and regulations will ensure reliable electricity in Victoria over the coming decade, and examines the power system to understand the effect of renewable electricity expansion, and the possible closure of Alcoa's Portland smelter. The report recommends that the Victorian Government ask the Australian Energy Market Operator (AEMO) to develop an appropriate reliability standard and strategic reserve and that the Government prepares the administrative arrangements to implement this.
Download the report (2.3mb) by clicking on the image (left).
Do Victoria’s households leave less money on the table when they switch electricity retailers?
A Working Paper by Bruce Mountain, Director, VEPC, and Stephanie Rizio, Research Officer, VEPC • September 2019
Governments, regulators and customer groups in Australia have urged customers to switch retailers to get better deals. Customers have responded and switching rates are high. A common view is that over almost a decade of unregulated competition a twotier market has evolved, in which “switchers” avoid the “loyalty tax” paid by “remainers”. We analyse a little over 48,000 Victorian household electricity bills to compare outcomes for switchers and remainers.
Download the Working Paper (1mb) by clicking on the image (left).
The exercise of market power in Australia’s National Electricity Market following the closure of the Hazelwood Power Station
A Working Paper by Bruce Mountain, Director, VEPC, and Dr Steven Percy, Research Fellow, VEPC • March 2019
The National Electricity Market, a wholesale market covering Australia’s southern and eastern states, commenced operation in 1998. Though the market has long been considered a successful part of Australia’s energy market reforms, econometric analysis finds that coal generation closure in 2017 delivered an unexpected price shock in wholesale markets. Further analysis finds that average prices received by
the coal-fired generators when coal generators set the clearing prices, more than doubled in the year after closure compared to the previous year. The conclusions raise concerns about supply-side market concentration, and also about the design, operation and oversight of the wholesale market. This merits serious consideration not least in the context of future coal generation closure.
Download the Working Paper (5.8mb) by clicking on the image (left).
Presentations, Webinars and Podcasts
BTM prospects in Australia: observations from contemporary evidence of consumers’ response to prices
Presentation by Director VEPC, A/Prof Bruce Mountain
Behind-the-meter symposium • Sydney • 29 August 2019
Download the PowerPoint presentation (2.9mb) by clicking on the image to the right.
Market power in the National Electricity Market following the closure of the Hazelwood Power Station
Presentation by Director VEPC, A/Prof Bruce Mountain and Dr Steven Percy
Economics Society of Australia Annual Conference of Economists
Pullman on the Park • Melbourne • 15 July 2019
Download the PowerPoint presentation (4.7mb) by clicking on the image to the right, and the
Generation Merit Order ($/MWh) animation (15.2mb) by clicking on the image below, right.
Does renewable electricity generation reduce electricity prices?
Presentation by Bruce Mountain, Director VEPC, Steven Percy, Stephanie Rizio and Dong Wang
100% renewables workshop program • Canberra • 4 July, 2019.
A presentation and discussion on Australia’s retail markets, wholesale electricity design in context of rapid decarbonisation and economics of storage.
Download the PowerPoint presentation (5.7mb) by clicking on the image to the right.
Market power in Australia’s National Electricity Market following the closure of the Hazelwood Power Station
Presentation by VEPC Director, Associate Professor Bruce Mountain and and Dr Steven Percy
Victoria Energy Policy Centre, Victoria University • Melbourne • 27 March 2019
Download the PowerPoint presentation (8.1mb) by clicking on the image to the right.
Australia’s energy policy: where and why did it go awry? Or … did it?
Presentation by VEPC Director, Associate Professor Bruce Mountain
Clean Energy Disruption - Fixing the Energy Mess • Melbourne • 27 February 2019
A presentation and discussion on Australia’s energy transition, energy policy and what we need to fix it.
Download the PowerPoint presentation (4.6mb) by clicking on the image to the right.
A presentation by VEPC Director, Associate Professor Bruce Mountain and and Dr Steven Percy • Melbourne • 27 March 2019.
The National Electricity Market, a wholesale market covering Australia’s southern and eastern states, commenced operation in 1998. Though the market has long been considered a successful part of Australia’s energy market reforms, econometric analysis finds that coal generation closure in 2017 delivered an unexpected price shock in wholesale markets. Further analysis finds that average prices received by the coal-fired generators when coal generators set the clearing prices, more than doubled in the year after closure compared to the previous year. The conclusions raise concerns about supply-side market concentration, and also about the design, operation and oversight of the wholesale market. This merits serious consideration not least in the context of future coal generation closure.
Market Power in Australia’s National Electricity Market
Commentary
Snowy 2.0 will not produce nearly as much electricity as claimed. We must hit the pause button.
Bruce Mountain, VEPC Director, The Conversation, Oct
Ownership, regulation, and financial disparity: The case of electricity distribution in Australia
Bruce Mountain, ScienceDirect, Oct
Victorians who switched energy retailers only save $45 a year – leaving hundreds on the table
Bruce Mountain, The Conversation, 2 Sept
Australia’s energy woes will not be solved by reinforcing a monopoly
Bruce Mountain, The Conversation, 23 Aug
New demand-response energy rules sound good, but the devil is in the (hugely complicated) details
Bruce Mountain, The Conversation, 24 July
Regulator’s ruling on default market offers might not lower prices
Bruce Mountain, Renew Economy, 30 April
Energy price gouging exposed by new regulations
Bruce Mountain, Renew Economy, 14 Jan
New regulations expose energy price gouging through ‘free’ comparison sites
Bruce Mountain, The Conversation, 9 Jan