Category: Archive

Rhetoric and confusion: The underlying factors in the 1994
fires, the Black Christmas Fires of 2001 and those of January 2003 are
also blurred, buried or lost in a flurry of rhetoric and confusion.

Clear objectives lacking: The underlying causes of bushfires in
fact would seem to include the apparent reluctance or inability for
politicians, agencies, interest groups and the civil society to develop
a clear set of information on which to develop objectives and work
consistently on solutions at varying scales and timeframes.

Voice of experience: This is the view of Dr Peter Moore who has
25 years of fire management and forestry experience. He coordinated the
management of fires during the 1994 NSW bushfire emergency before
heading up strategic planning for State Forests. Since 1998 he has been
the coordinator of Project FireFight South-East Asia, based in Vietnam.

The Land, 1/12/2005, p. 14

Source: Erisk – www.erisk.net 

The background: In 2001 Mr K had entered into a five-year
contract with the retailer for the supply of electricity. The Energy
Retail Code applies to customers who consume less than 160MWh per year.
As Mr K’s company consumes more than 160MWh per year it is the terms of
the contract that determine the rights and obligations of both parties
rather than the Code.

Peak consumption not registered: As part of the investigation
EIOSA found that an internal audit process carried out in 2004 by the
retailer identified that the peak register on the business’s meter had
not been registering peak consumption since April 2001.The retailer
raised a service order with the electricity distributor and a faulty
time switch was replaced in July 2004.

Legal advice sought: The distributor also provided the retailer
with the billing adjustments necessary back to April 2001 to charge for
the electricity used. EIOSA obtained independent legal advice as to
whether the company was contractually liable to pay the back-bill.

Retailer had right to charge something: The advice stated that
as a basic principle customers are obliged to pay for electricity
consumed as determined by the metering equipment and at the rate agreed
to in the contract. Furthermore the failure of metering equipment does
not preclude an electricity retailer for billing for electricity
consumed but not recorded as long as the retailer can determine by
reasonable means the quantity of electricity used but not recorded.

Time-to-pay also in dispute: In the previous discussions between
the retailer and Mr K the retailer offered a twelve-month period to pay
the back-bill. Mr K was not satisfied with this.

EIOSA’s concern: Although the independent legal advice confirmed
that the retailer was entitled to payment for this back-bill, EIOSA had
concerns about the length of time it had taken the retailer to identify
the problem and advise Mr K’s company.

Bill cut by more than $10,000: As a result of discussions
between Ombudsman and the retailer, the retailer agreed to reduce the
back-bill by $10,300. In addition, because of the significant impact of
such a debt the retailer agreed to negotiate fair and reasonable
repayment terms taking into account the company’s financial
circumstances and capacity to pay.

Time-to-pay terms agreed: EIOSA advised Mr K that if he was not
satisfied with the repayment terms he could contact this office again.
This was not required as terms were agreed.

Reference: Energy Industry Ombudsman SA Annual Report 2004-05.

Erisk Net, 6/12/2005

Market capitalisation close to $110m: It has been selling 20
million shares at $1 each, but with more than 80 per cent of its shares
remaining in private hands, its market capitalisation would be closer
to $110 million, making it Australia’s largest listed dedicated biofuel
producer. The company hoped to hit the boards on December 14.

Revenue forecast of $54.2m: Australian Biodiesel’s plant at
Berkeley Vale in NSW is believed to be the largest in Australia, and
produces diesel from animal fat, palm oil and waste cooking oil,
usually for use in fuel blends containing traditional petro-diesel. The
company forecast revenue of $54.2 million in 2006, with net profit
expected to be $8.2 million.

P/E ratio dependent on Narangba facility: Its full-year price
earnings ratio of 13.5 times was high, but the company claimed a
ramp-up in production in the final quarter of next year would result in
a P/E ratio of just 7.8 times for that period. This is dependent on
Australian Biodiesel constructing its second production facility at
Narangba in Queensland on time and to budget. At 160 million litres per
year of capacity, it would be four times the size of Berkeley Vale.

The Australian Financial Review, 3-/12/2005, p. 46

Source: Erisk – www.erisk.net 

Electricity consumption growth: The State Government said
Victoria’s average electricity consumption was growing by about 1.9 per
cent annually. Summer peak demand was growing at a rate of 2.8 per
cent, mainly because of increasing use of air-conditioners, whose sales
have trebled in recent years.

Annual warming: Paradoxically, the air-conditioner, particularly
the reverse-cycle type, has become a metaphor for the dilemma that
climate change posed. Figures released by the State Government showed
metropolitan Melbourne could anticipate annual warming of 0.2 to 1.4
degrees celsius over the next 25 years. The number of hot days was
expected to increase by up to 40 per cent as rainfall declined, sea
levels rose, wind and dust storms increased and droughts became more
frequent.

Bushfires and flooding: Bushfires were likely to increase in
frequency and intensity as a result of these changes. So, too, will
flash flooding and soil erosion.

Ocean currents study: A further sign, in the past few days, of
wide-scale climate change emerging could be drawn from a study of
powerful ocean currents, such as the Gulf Stream, that shifted heat
around the globe. British scientists using data from 1957 on have found
those currents weakening and, as a consequence, temperatures rising by
up to 10 degrees in some areas.

The Age, 5/12/2005, p. 14

Source: Erisk – www.erisk.net 

Council afraid of legal action: But Brisbane Water and City
Business Committee chair John Campbell said swimming-pool and spa
owners had earned an exemption from increased water restrictions to
avoid causing damage to residents’ pools and subsequent litigation: “if
they don’t keep pools full of water, some of them can pop out or gain
significant structural damage from the pressure of the surrounding
ground, and that would have exposed councils to significant claims of
damage”, he said.

A “practical” decision: “I’m sure non-pool owners would question
why (they were not subject to harsher restrictions) but the councils
thought long and hard before they made this decision and it was purely
for a practical reason … for a very real financial reason,” he said.

Mayor takes different angle: But Brisbane Lord Mayor Campbell
Newman said the move was designed to protect the assets of “normal
Queenslanders” and the pool industry. He urged pool owners to buy a
pool cover to reduce their water consumption.

The Courier Mail, 5/12/2005, p. 5

Source: Erisk – www.erisk.net 

Greater good? Greens-dominated Waverley Council wants to make it
tougher for householders to install air coolers because they are bad
for the environment. The call follows similar moves in relation to
backyard swimming pools, which has sparked controversy in the
community.

“Illogical, unfair” says ALP: Currently, residents do not need
to seek council approval for air conditioners as long as they meet
planning guidelines. ALP councillors are outraged by the plan. “It is
illogical and unfair,” ALP deputy mayor George Newhouse said.

The Daily Telegraph, 3/12/2005, p. 3

Source: Erisk – www.erisk.net