1 Angela Catt 14 December 2015 > Customer driven transformation > AGL New Energy > 14 December 2015
Moving from disruption to transformation. 2 › This industry is changing, driven by multiple disruptive forces › Disruption to date, has largely been good for consumers › Transforming without adverse consumer impacts should be a priority › Transform to support competition, innovation and Australian leadership › Regulatory settings need to be agreed early, including: 1. Appropriate technology standards 2. Competitive neutrality 3. Ring fencing of monopoly businesses 4. Cost reflective network tariffs › By not managing the transition well, we risk losing the opportunity to transform the industry in a way that brings consumers with us > Customer driven transformation > AGL New Energy > 14 December 2015
Change driven by positive disruption. 3 Disruption from three directions has largely been good for consumers. Today’s Centralised Future Ubiquitous Energy Model Energy Model Technology › Solar Grid Grid › Energy Storage Control Systems › Demand Demand Reg. & Policy › Tariff structures › Power of Choice › Incentives Digital Energy › Carbon Reduction Meters Storage Distributed Control Competition Generation Systems › New business models › Start-ups Passive Engaged Customers Customers > Customer driven transformation > AGL New Energy > 14 December 2015
Global electricity price changes. 4 Electricity prices have increased in Australia more than other countries. > Customer driven transformation > AGL New Energy > 14 December 2015
Electricity costs. 5 Cost of living concerns are focused on electricity prices. > Customer driven transformation > AGL New Energy > 14 December 2015
New Energy business group role. 6 Playing key role in the transformation to a customer-driven energy market. AGL Energy AGL New Market & Group Energy Operations Centralised gas Distributed and electricity energy supply and supply to the meter energy services > Customer driven transformation > AGL New Energy > 14 December 2015
New Energy products. 7 Focusing on comfort, convenience and control for our customers. Create 1 million smart connections across homes and businesses by 2020 Become preeminent customer choice for Competitive and Connected energy products and services that provide Convenience, Comfort and Control Large Commercial Small Commercial Commercial Distributed Heat & Power Distributed Heat & Power Service & Repair Transport LNG & CNG Embedded Networks Demand Response Digital Metering Distributed Generation Energy Storage Electric Vehicle Services Home Energy Management Emerging Technologies > Customer driven transformation > AGL New Energy > 14 December 2015
Regulatory settings required early. 8 Policies that advocate the consumer and avoid bad disruption. 1 4 3 2 Ring Fencing Appropriate Cost reflective Competitive Monopoly Technology Network Neutrality Businesses Standards tariffs • Standards which Different providers of Monopoly businesses Cost reflective promote: products and should not be Network tariffs are 1. customer choice services, in markets, allowed to use their required to: 2. enhance safety must compete openly regulated funds in 3. do not limit on their merits. In contestable markets . Ensure that all • investment customers contribute particular: 4. minimise overheads fairly to the shared Ring fencing should • There can not be implicit costs of networks. incorporate legal and • • Standards should or explicit advantages over financial structures. remain agnostic of each other. Provide price signals to • current and future increase economic Data and information There cannot be different • • welfare. ie. efficient regulation. should not be used for regulations for new usage of current competitive advantage. entrants vs. incumbents. infrastructure and • Where possible There must be sensible avoiding additional Resources should not be • based on • customer protection network capex. shared. international requirements applied to all parties equally. Inform customers so standards. • they can make efficient investment decisions on new technologies. > Customer driven transformation > AGL New Energy > 14 December 2015
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