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Mike Swanston - The Customer Advocate - Value and costs - extracting value chain. For consumers, generator and networks

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Page 2: Mike Swanston - The Customer Advocate - Value and costs - extracting value chain. For consumers, generator and networks

“In simple terms, ring-fencing is designed to limit the ability of a regulated service provider to confer an unfair advantage when it or one of its affiliates operates in a contestable market.”

(AER Ring Fencing Guidelines – preliminary position paper, April 2016 pg 10)

Page 3: Mike Swanston - The Customer Advocate - Value and costs - extracting value chain. For consumers, generator and networks

Empowerment

Diversity

Trust

Page 4: Mike Swanston - The Customer Advocate - Value and costs - extracting value chain. For consumers, generator and networks

Deterministic customers

Page 5: Mike Swanston - The Customer Advocate - Value and costs - extracting value chain. For consumers, generator and networks
Page 6: Mike Swanston - The Customer Advocate - Value and costs - extracting value chain. For consumers, generator and networks
Page 7: Mike Swanston - The Customer Advocate - Value and costs - extracting value chain. For consumers, generator and networks

“Peak demand is between 4 and 8 pm”

“Peak demand is 7am – 9am & 5pm to 8 pm”

“Peak period is between 3 and 9 pm, seasonal”

“Peak period is 2pm – 8pm, seasonal;

“single phase residential $2.27/kWh ‘localised dynamic peak energy price”

“Ausgrid is not able to implement ‘efficient tariffs’ immediately due to the unacceptable bill impacts”

“Our analysis indicates that the reference ‘efficient tariffs’ would result in unacceptable bill shocks for our customers.”

“For residential customers, with an interval meter this will mean that the primary tariff will remain flat in structure ..”

“.. a declining block tariff – the more you use, the less per unit you pay”

“… an inclining block tariff - the more you use, the more per unit you pay”

Page 8: Mike Swanston - The Customer Advocate - Value and costs - extracting value chain. For consumers, generator and networks
Page 9: Mike Swanston - The Customer Advocate - Value and costs - extracting value chain. For consumers, generator and networks
Page 10: Mike Swanston - The Customer Advocate - Value and costs - extracting value chain. For consumers, generator and networks

The ‘thin pipe’ model (or the ‘light energy footprint’ customer)

Page 11: Mike Swanston - The Customer Advocate - Value and costs - extracting value chain. For consumers, generator and networks
Page 12: Mike Swanston - The Customer Advocate - Value and costs - extracting value chain. For consumers, generator and networks

Controls :• Pool pump• 2nd Fridge• Air-conditioners• Water heater

Inputs:• Appliance / mains demand (CT)• Temperature

In-home displayWiFi appliancesSolar PV performanceBattery charge / discharge control

Page 13: Mike Swanston - The Customer Advocate - Value and costs - extracting value chain. For consumers, generator and networks

"Always back the horse named self-interest, son. It’ll be the only one trying. "

JACK LANG

Page 14: Mike Swanston - The Customer Advocate - Value and costs - extracting value chain. For consumers, generator and networks