Australia Edition 5

THE MARKET

EnergyAustralia is one ofAustralia’s largest energy

retailers, supplying energy tomore than 1.4million

homes and businesses in New South Wales, the

ACT and Queensland.

Every day more than three million Australians

receive their energy from its network of substations

and cables –which is the largest electricity network

inAustralia.

Prior to the start of industry deregulation in 1996,

a customer’s electricity supplier was determined

purely by the location of their premises. Priceswere

fixed and service provision was determined by

geographical monopoly.

Although large business users of electricity

were one of the first groups to be able to

choose their supplier, full retail competition

began in January 2002. Residential and small

business customers in NewSouthWales and

Victoria were able to choose their electricity

and gas supplier for the first time.

Market deregulation resulted in a

significant increase in competition, putting

pressure on prices and margins. It marked

the beginning of an entirely new era for the

energy industry.

ACHIEVEMENTS

Since the start of full retail competition, the

challenge for EnergyAustralia has been to

protect its established customer base while

winning newcustomers from its competitors.

The company developed a sales model

which set new industry benchmarks, as well

as attracting the interest of other utilities and

government agencies.

EnergyAustralia was open and transparent in

communicating that customers had choice. This

approach helped EnergyAustralia to consolidate

itsmarket positionas ‘energyexperts’. The company

continues to record sizeable gains in brand

recognition, general awareness and brand

preference.

EnergyAustralia was one of the first energy

companies to come up with renewable energy

options for its customers which it commenced in

1996. In 2006/07 the company delivered 4.6million

tonnes of greenhouse gas abatement, which is equal

to removing about 1 million cars from the road for

one year (Australian Greenhouse Office estimates

4.48 tonnes CO

-e/year).

As well as providing a safe, reliable source of

energy to customers, EnergyAustralia is committed

to helping them to make more informed choices

about their energy use by giving them the power to

reduce their electricity bills and their impact on the

environment.

Residential energy efficiency remains a focus of

the EnergyAustralia EnergySave program, and it

has been identified as the most cost effective way

of reducing greenhouse gas emissions. The

programhelps customers tomake informed choices

about their energy use, and rewards energy saving

behaviour. EnergySave initiatives include an

EnergyWise Newsletter, which offers tips, safety

messages and information; a web-based Energy

UsageGauge; the EnergySave servicewhich offers

a home energy audit as well as energy saving

devices; the Spare Fridge Retirement Program; and

the Hot Water Awareness campaign.

EnergyAustralia employs over 5,200 staff and is

the largest direct employer of apprentices in NSW.

Through targeted programs and sponsorships

such as the award-winning Aboriginal and Torres

Strait Islander (ATSI) Pre-Apprentice Training

Program, EnergyAustralia has doubled ATSI

representation in itsworkforce in the past two years.

HISTORY

EnergyAustralia was established in March 1996

after amerger betweenSydneyElectricity andOrion

Energy (Newcastle). Prior to this, the provision of

electricity for the Sydney area was controlled by

the respective councils.

EnergyAustralia is nowone of the largest energy

services companies in Australia, providing broad-

based energy solutions ranging fromelectricity and

gas supply, to energy management and renewable

energy alternatives.

In 2004 EnergyAustralia celebrated the

Centenary of Electricity -100 years since the

introduction of electric streetlights inSydney.While

that basic electric technology remains the same over

a century later, the distribution end of the electricity

supply chain is undergoing a revolution. Electricity

planners are rethinking the role of the network –

the substations, poles and wires - in meeting the

challenge of climate change. This will hasten the

development of a network that ismore efficient and

one that gives more power and control to

customers. EnergyAustralia calls this the network

of the future, and its current rollout of smart meters

marks the beginning of this new era.

THE PRODUCT

EnergyAustralia’s product offering has

continued to evolve – responding to

changing customer demands, a rapidly

growing population and the need to be more

environmentally aware.

The company has moved from simply

supplying electricity to become one of the

largest energy suppliers inAustralia providing

broad-based energy solutions. It is

responsible for providing and managing

electricity infrastructure for the Sydney,

Central Coast and Hunter regions in NSW;

purchasing and supplying electricity and gas;

purchasing and supplying energy from

“green” sources; electrical contracting and

engineering; connecting customers; local

repairs; and major capital works.

Over the last 60 years household demand

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