NSW sale hedges must include carbon price impacts says Auditor: NSW Treasury agrees

NSW coal and carbon contracts must align with the sale contracts said Peter Achterstraat, NSW Auditor-General. He said NSW hedge contracts would need to adequately capture the additional costs of emissions trading (ETS).

Australian carbon price: consensus in the market; free market with a price around $20.00 the most likely outcome

No trades were reported in AUEs in the week to 25 August 2008.

NSW electricity asset sale: $10.0 billion; less carbon costs: say AGs advisors: but carbon cost impact a state secret

Peter Achterstraat, NSW Auditor-General said a confidential reserve price for each transaction needed to be set by Government, based on "retention value". This was the value if no-one offered to buy. NSW Treasury had not done a retention valuation, yet. A Retention Value was lower than the transaction value; and was a State secret. However it was not a secret to anyone interested to multiply MW/h by CO2-e. See above for the results at a low $20 a tonne/C02.

NSW Retailer of Last Resort (ROLR) only applies to failure of a second tier retailer: if State retailer crashes, no customer protection

The current ROLR arrangements for New South Wales only apply to failure of a second tier retailer and no arrangements are in place in the event of the failure of a Retailer.  However that was about to change.

NSW Treasury may sell at fire sale price; given the “broader objectives” of the Treasury plan

The value of retaining the NSW electricity assets was a state secret; but, it was lower than the official sale valuation. The temptation to sell at a low price was perhaps, high.  Peter Achterstraat, NSW Auditor-General urged Treasury, to set a confidential reserve price for each sale.

Costa’s travelling circus: mighty road-show starts, following NSW sale bill; but, assets may not sell, warns NSW Auditor-General

The sale of the state-owned EnergyAustralia, Macquarie Generation, Integral Energy, Delta Electricity, Country Energy, and Eraring Energy was planned to follow the passing of the sale bill.

NSW electricity sale needs a backup plan: Auditor calls for reserve price, and plan for what to do if reserve price not met

The NSW Auditor-General’s Report to the Legislative Assembly. NSW reported, A-Gs consultant - Lexicon Partners - opinion, NSW Treasurym was unprepared for a worst case.

Sell NSW state generation development sites as stand-alone assets, advises NSW Auditor-General

Carbon price: NGACs spot to $5, forwards, $6.00 mark for week to 25 August 2008

The trend was once again a downward one as the spots and Cal09s came off further. The spot market has now softened to a level ($6.00) that it has not breached since January.

SA Price/Demand Comparison Graph for 7 days ending 2008-8-23

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TAS Price/Demand Comparison Graph for 7 days ending 2008-8-25

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National Price Comparison Graph for 7 days ending 2008-8-23

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