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Website: www.ngconsulting.com.auWebsite: www.ngconsulting.com.au Email: [email protected]: [email protected]

ENERGY BROKERAGE SERVICEENERGY BROKERAGE SERVICE

SUPPLIED BYSUPPLIED BYNEW GENERATION CONSULTING PTY NEW GENERATION CONSULTING PTY

LTDLTD&&

DAVID STRONG & ASSOCIATES PTY LTDDAVID STRONG & ASSOCIATES PTY LTD


PRINCIPAL CONSULTANTSPRINCIPAL CONSULTANTS DAVID CODDINGTONDAVID CODDINGTON

is a qualified Economist and is a qualified Economist and Marketing Management Marketing Management Consultant who specialises in Consultant who specialises in providing management providing management consulting services to the Energy consulting services to the Energy Sector. David was the Manager, Sector. David was the Manager, Market Research for the SECV Market Research for the SECV and responsible for the operation and responsible for the operation of the Customer Information and of the Customer Information and Customer Billing Systems prior to Customer Billing Systems prior to going into private practice, going into private practice, establishing New Generation establishing New Generation Consulting Pty Ltd. Mr Consulting Pty Ltd. Mr Coddington was also a Principal Coddington was also a Principal Consultant to the Office of the Consultant to the Office of the Regulator General now the Regulator General now the Essential Services Commission Essential Services Commission during the previous Electricity during the previous Electricity Price Review. He is also on the Price Review. He is also on the Consultants Panel for the Consultants Panel for the Tasmania Treasury and EnergyTasmania Treasury and Energy Regulator Board.Regulator Board.

DAVID STRONGDAVID STRONGis a qualified Electrical Engineer is a qualified Electrical Engineer and was the Settlements Manager and was the Settlements Manager for the Victorian Power Exchange for the Victorian Power Exchange prior to taking up an executive prior to taking up an executive position with TXU from where he position with TXU from where he entered into private practice entered into private practice establishing David Strong & establishing David Strong & Associates Pty Ltd. Associates Pty Ltd.


If you fall into one or more of the If you fall into one or more of the following categories:following categories:

have you ever been frustrated or completely have you ever been frustrated or completely bamboozled by your current Energy Retailer;bamboozled by your current Energy Retailer;

have little or no understanding of your Supply have little or no understanding of your Supply Contract conditions;Contract conditions;

have little or no idea what you are being charged have little or no idea what you are being charged for by your Energy Retailer and why;for by your Energy Retailer and why;

received a bill that for no apparent reason is too received a bill that for no apparent reason is too high or;high or;

your Supply Contract is due for renewal or;your Supply Contract is due for renewal or; Require an independent and unbiased negotiated Require an independent and unbiased negotiated

Energy Supply contract.Energy Supply contract. Then the following information will interest you.Then the following information will interest you.


The service we offer includes:The service we offer includes:

The analyses of client’s historical billing The analyses of client’s historical billing information;information;

Negotiations with current Retailer in respect to Negotiations with current Retailer in respect to billing anomalies;billing anomalies;

Obtaining quotes including provisional Obtaining quotes including provisional contracts;contracts;

Analyses of quotes and contract conditions and Analyses of quotes and contract conditions and Advising Client of best offer.Advising Client of best offer.On behalf of the Client negotiate with Retailer On behalf of the Client negotiate with Retailer

for any re-imbursements.for any re-imbursements.


The ProcessThe Process Collect between 12 and 18 Months monthly Energy Billing Collect between 12 and 18 Months monthly Energy Billing

Data (Electricity and/or Gas) from the ClientData (Electricity and/or Gas) from the Client Analyse the billing data for anomalies in data and/or invoicingAnalyse the billing data for anomalies in data and/or invoicing Develop periodic energy profilesDevelop periodic energy profiles Develop and issue letter of invitation to prospective Retailers Develop and issue letter of invitation to prospective Retailers

(six minimum)(six minimum) Send out letter to Retailers including periodic energy profile Send out letter to Retailers including periodic energy profile

informationinformation Follow up on letters with Retailers seeking intention to quote.Follow up on letters with Retailers seeking intention to quote. Input Retailers returns into mathematical modelInput Retailers returns into mathematical model Analyses model output Analyses model output Analyse Retailers contract conditionsAnalyse Retailers contract conditions Recommend to Client most suitable Retailer and Contract Recommend to Client most suitable Retailer and Contract

Term that best suites their operations.Term that best suites their operations. If required also act on behalf of client to negotiate re-If required also act on behalf of client to negotiate re-

imbursement of monies from incorrect invoicing by Retailer.imbursement of monies from incorrect invoicing by Retailer. If required suggest suitable Energy Management Consultants If required suggest suitable Energy Management Consultants

to assist in energy management practices to lower energy to assist in energy management practices to lower energy costs.costs.


Extract From Billing HistoryExtract From Billing HistoryMay June July August April Annual

peak 18926 20797 19454 23710 22527 255510off peak 19207 22783 19477 21549 21103 257867days 28 32 28 32 32 361

NEM regional (Smelter) 0.1917 0.1917 0.245 0.257 0.257 0.257NEM other (Pool) 0.237 0.237 0.1057 0.09714 0.09714 0.09714NEM AncillaryMRETMetering Charge


Extract From Invoice HistoryExtract From Invoice Historynetwork -peak $256.45 $281.80 $263.60 $321.27 $319.21 $3,516.97network o-p $186.50 $221.22 $189.12 $209.24 $214.41 $2,542.41demand $711.51 $813.16 $711.51 $813.16 $846.56 $9,296.59standing $289.53 $330.89 $289.53 $330.89 $337.33 $3,756.59network $1,443.99 $1,647.07 $1,453.76 $1,674.56 $1,717.50 $19,112.57

peak energy $1,544.74 $1,697.45 $1,665.81 $2,030.24 $1,928.94 $21,719.60op energy $543.37 $644.53 $551.00 $609.62 $597.00 $7,295.06

$2,088.11 $2,341.98 $2,216.81 $2,639.86 $2,525.95 $29,014.66

peak loss $71.00 $78.02 $76.56 $93.31 $88.66 $998.28op loss $24.97 $29.62 $25.33 $28.02 $27.44 $335.30loss cost $95.97 $107.64 $101.89 $121.33 $116.10 $1,333.58

NEM regional (Smelter) $76.35 $87.26 $99.63 $121.49 $117.12 $1,317.48NEM other (Pool) $94.40 $107.88 $42.98 $45.92 $44.27 $643.74NEM Ancillary $0.00 $0.00 $0.00 $0.00 $0.00 $0.00MRETMetering Charge $0.00 $0.00 $0.00 $0.00 $0.00 $0.00REG $170.75 $195.14 $142.61 $167.41 $161.39 $1,961.22

other $12.13 $13.86 $12.13 $13.86 $13.86 $156.36

TOTAL $3,810.95 $4,305.70 $3,927.20 $4,617.03 $4,534.79 $51,578.38

GST $381.09 $430.57 $392.72 $461.70 $453.48 $5,157.84

TOTAL $4,192.04 $4,736.27 $4,319.92 $5,078.73 $4,988.27 $56,736.22


Energy Information Given to Energy Information Given to Retailers for Quotation Retailers for Quotation

Billing Period Bill Days Energy Used (MJ)

23/05/03 - 31/05/03 8 119,517 31/05/03 - 23/07/03 53 791,806 23/07/03 - 19/09/03 58 1,046,969 19/09/03 - 30/09/03 11 128,673 30/09/03 - 20/11/03 51 596,576 20/11/03 - 31/12/03 41 253,714 31/12/03 - 22/01/04 22 110,226 22/01/04 - 23/03/04 61 305,000

Total 305 3,352,481

Electricity Information Gas Information

Month peak energy (kWh)

off peak energy (kWh)

peak demand (kWh)

days

May 18926 19207 85 28

June 20797 22783 87 32

July 19454 19477 83 28

August 23710 21549 83 32

September 20563 22715 88 31

October 22527 21103 90 32

November 20563 22715 95 30

December 20563 22715 97 30

January 04 22740 21300 112 28

February 22320 22800 115 30

March 20820 20400 110 28


Standing Data ExampleStanding Data Example

2003 STANDING DATA 2003 2004

Company Peak Energy Rate

Off peak Energy Rate

Peak Energy Rate

Off peak Energy Rate DLF MLF

Demand charge 60.86 63.36 ORIGIN 8.1620 2.8290 8.5628 2.829 1.0445 1.0014Standing charge 3774.22 3847.64 TXU 8.1620 2.8290 5.5180 2.3680 1.0445 1.0014peak energy 1.355 1.417 INTEGRAL 8.1620 2.8290 5.8980 2.7480 1.0445 1.0014off peak energy 0.971 1.016 POWER DIRECT 8.1620 2.8290 5.8300 3.0310 1.0445 1.0014chargable demand 152.4 152.4 AGL 8.1620 2.8290 5.1000 2.6500 1.0445 1.0014DLF 1.0445 1.0445 ORIGIN 2 8.1620 2.8290 5.4420 2.3980 1.0468 1.0022MLF 1.0014 1.0014

Rates for 2002/03 New Rates from July 2004


Example of Part Analysis From a Example of Part Analysis From a Retailer’s QuotationRetailer’s Quotation

May June July August September April Annualpeak 18926 20797 19454 23710 20563 20820 253803off peak 19207 22783 19477 21549 22715 20400 257164days 28 32 28 32 31 32 361

NEM regional (Smelter) 0.23 0.23 0.23 0.23 0.23 0.23NEM other (Pool) 0.0395 0.0395 0.0395 0.0395 0.0395 0.0395NEM Ancillary 0.0998 0.0998 0.0998 0.0998 0.0998 0.0998MRET 0.05955 0.05955 0.05955 0.05955 0.05955 0.05955Metering Charge 69.17$ 69.17$ 69.17$ 69.17$ 69.17$ 69.17$ 830

network -peak $268.18 $294.69 $275.66 $335.97 $291.38 $295.02 $3,596.39network o-p $195.14 $231.48 $197.89 $218.94 $230.78 $207.26 $2,612.79demand $1,977.93 $2,260.50 $1,977.93 $2,260.50 $2,189.85 $2,260.50 $25,501.21standing $439.93 $502.77 $439.93 $502.77 $487.06 $502.77 $5,671.90network $2,881.18 $3,289.44 $2,891.41 $3,318.18 $3,199.08 $3,265.55 $37,382.29

peak energy $1,029.95 $1,131.77 $1,058.69 $1,290.30 $1,119.04 $1,133.02 $13,811.96op energy $460.58 $546.34 $467.06 $516.75 $544.71 $489.19 $6,166.79

$1,490.54 $1,678.11 $1,525.75 $1,807.04 $1,663.74 $1,622.22 $19,978.75

peak loss $50.57 $55.57 $51.98 $63.36 $82.41 $83.44 $906.48op loss $22.62 $26.83 $22.93 $25.37 $31.55 $28.34 $339.66loss cost $73.19 $82.40 $74.92 $88.73 $113.97 $111.78 $1,246.15

NEM regional (Smelter) $91.81 $104.92 $93.73 $108.97 $104.20 $99.24 $1,230.22NEM other (Pool) $15.73 $17.98 $16.06 $18.71 $17.89 $17.04 $211.17NEM Ancillary $39.84 $45.53 $40.67 $47.28 $45.21 $43.06 $533.81MRET $23.77 $27.17 $24.27 $28.21 $26.98Metering Charge $69.17 $69.17 $69.17 $69.17 $69.17 $69.17 $830.00REG $240.32 $264.77 $243.90 $272.34 $263.45 $228.52 $3,098.03

other $0.00

TOTAL $4,685.23 $5,314.71 $4,735.97 $5,486.29 $5,240.24 $5,228.06 $61,705.22

GST $468.52 $531.47 $473.60 $548.63 $524.02 $522.81 $6,170.52

TOTAL $5,153.75 $5,846.18 $5,209.57 $6,034.92 $5,764.26 $5,750.87 $67,875.74


Summary of Bill & Tariff AnalysesSummary of Bill & Tariff Analyses

Recommendation:Client Take a 2 Year Contract with TXUAnd remain on the 120 kWh MinimumDemand Tariff.

RESULTS

Company Annual Bill

ORIGIN $56,736.22 120.00TXU $46,476.79 120.00INTEGRAL $49,701.47 120.00POWER DIRECT $49,643.88 120.00AGL $52,443.51 120.00ORIGIN 2 $67,875.74 120.00

Max Demand

STANDING DATA

2004 C2G5BDemand charge 63.36Standing charge 3847.64 108.67peak energy 1.417 5.793off peak energy 1.016 1.278chargable demand 120DLF 1.0445MLF 1.0014TARIFF DIFFERENCE RESULTS

Current Tariff 17,945.35$ Tariff C2G5B 18,204.71$ Difference 259.36-$


Gas Billing History Summary Gas Billing History Summary ExampleExample

Billing Period no_days MJ_used Total MJ Used For Billing Period

charge GST Total Charge Total Charge For Split Billing Period

23/5/03 - 31/5/03 8 119,517 386.58$ $38.66 $425.2431/05/03 - 23/7/03 53 791,806 911,323 2,735.10$ $273.51 $3,008.61 $3,433.8523/07/03 - 19/09/03 58 1,046,969 1,046,969 3,539.84$ $353.98 $3,893.8319/09/03 - 30/09/03 11 128,673 475.33$ $47.53 $522.8630/09/03 - 20/11/03 51 596,576 725,249 1,856.29$ $185.63 $2,041.92 $2,564.7920/11/03 - 31/12/03 41 253,714 - 921.35$ $92.13 $1,013.4831/12/03 - 22/01/04 22 110,226 363,940 444.08$ $44.41 $488.49 $1,501.9722/01/04 - 23/03/04 61 366,830 366,830 1,326.74$ $132.67 $1,459.41Total 305 3,414,311 11,685.32$ $1,168.53 $12,853.85


Example of Simple Gas AnalysesExample of Simple Gas Analyses

Billing Period no_days Supply Charge

MJ Used Tranch 1

MJ Used Tranch 2

MJ Used Tranch 3

MJ Used Tranch 4

MJ Used Balance

Total MJ Used Total MJ Used For Billing Period

Charges For Tranch 1




Charges For Balance

Total Charges Ex GST

GST Total Charge

23/05/03 - 31/05/03 8 $ 6.08 13,142 59,138 47,237 119,517 $ 82.62 $ 276.65 $ 217.29 $ 582.64 $ 58.26 $ 640.91 31/05/03 - 23/07/03 53 $ 40.25 87,064 391,786 312,956 791,806 911,323 $ 589.95 $ 1,944.04 $ 1,544.12 $ 4,118.36 $ 411.84 $ 4,530.20 23/07/03 - 19/09/03 58 $ 44.05 100,000 450,000 496,969 1,046,969 1,046,969 $ 677.60 $ 2,232.90 $ 2,452.05 $ 5,406.59 $ 540.66 $ 5,947.25 19/09/03 - 30/09/03 11 $ 8.35 18,070 81,314 29,289 128,673 $ 122.44 $ 403.48 $ 144.51 $ 678.79 $ 67.88 $ 746.67 30/09/03 - 20/11/03 51 $ 38.73 83,778 377,002 135,796 596,576 725,249 $ 526.71 $ 1,763.62 $ 624.66 $ 2,953.72 $ 295.37 $ 3,249.09 20/11/03 - 31/12/03 41 $ 31.14 67,351 186,363 253,714 $ 423.44 $ 871.81 $ 1,326.38 $ 132.64 $ 1,459.02 31/12/03 - 22/01/04 22 $ 18.04 5,421 16,624 10,842 77,339 110,226 363,940 $ 39.87 $ 110.32 $ 63.08 $ 369.06 $ 600.36 $ 60.04 $ 660.40 22/01/04 - 23/03/04 61 $ 50.02 15,000 46,000 30,000 214,000 61,830 366,830 366,830 $ 110.31 $ 305.26 $ 174.54 $ 1,021.21 $ 289.43 $ 1,950.76 $ 195.08 $ 2,145.84 Total 305 $ 236.66 389,826 1,608,227 40,842 291,339 1,084,077 3,414,311 $ 2,572.94 $ 7,908.06 $ 237.62 $ 1,390.27 $ 5,272.06 $ 17,617.61 $ 1,761.76 $ 19,379.37


Gas Contract Analyses Summary Gas Contract Analyses Summary Complex ExampleComplex Example

STANDING DATA 2003 Summer WinterCommercial Tariff 14 MJ Used RATE c/MJ RATE c/MJTranch 1 - 100000 0.39939 0.4732Tranch 2 - 100000 0.25576 0.30401Tranch 3 - 120000 0.10553 0.12477Tranch 4Balance 0.0468 0.0547All Energy Charge 0.3670 0.3670Commodity Charge 0.0077 0.0077LNG System Security Charge 0.0008 0.0008Withdrawal Charge 0.0250 0.0250Variable Charges 0.0152 0.0152Total Variable Costs 0.4157 0.4157Fixed Supply Charges 5.8043 5.8043 $/daySupply ChargeTotal MJ Used 3,414,311 14,192.27$ Total Variable CostTotal Billing Days 305Total Bill 27,046.12$


Example Of Overall Summary Example Of Overall Summary AnalysesAnalyses

Customer Total MJ Used 3414311ABN Total billing Days 305Property Address Total Bill ($) Origin Original ORIGIN TXU AGLBilling Address 19,379 23,393 21,541 27,046 MIRNAccount_noTariff Commercial 14

Recommendation:Recommendation:

Client Switch Retailer to TXU and Client Switch Retailer to TXU and Take out a 24 Month Contract.Take out a 24 Month Contract.


Cost of ServiceCost of ServiceBasic Fee: Basic Fee:

Body Corporate Facilities:Body Corporate Facilities:$2,500 per electricity account plus GST$2,500 per electricity account plus GST$2,000 per gas account plus GST$2,000 per gas account plus GST

Caretaker or Building Manager ApartmentCaretaker or Building Manager ApartmentFree if included in the Body Corporate exerciseFree if included in the Body Corporate exercise

Electricity and/or Gas Accounts in excess of $50,000 per yearElectricity and/or Gas Accounts in excess of $50,000 per year the fee charged for this service is 7.5% of the annual account the fee charged for this service is 7.5% of the annual account billings plus GST. billings plus GST.

Fee-For-ServiceFee-For-ServiceNegotiations involving the recovery of overcharged billingsNegotiations involving the recovery of overcharged billings incur a fee equal to 12.5% of the recovered money plus GST. incur a fee equal to 12.5% of the recovered money plus GST.


Contact InformationContact InformationDavid Coddington & David Strong can be contacted at their office locatedDavid Coddington & David Strong can be contacted at their office locatedAt:At:Suite G07 620 St. Kilda RoadSuite G07 620 St. Kilda RoadMelbourneMelbourneVic 3004Vic 3004

Via the following phone numbers:Via the following phone numbers:David Coddington:David Coddington:TEL: (03) 9898 7550TEL: (03) 9898 7550MOB: 0412 999 881MOB: 0412 999 881

David Strong:David Strong:TEL: (03) 9525 0979TEL: (03) 9525 0979MOB: 0417 545 148MOB: 0417 545 148

Via the following E-Mail Addresses:Via the following E-Mail Addresses:David Coddington: David Coddington: [email protected] Strong: David Strong: [email protected]

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