This is usually the time of year that energy markets brace for peak energy demand associated with higher consumption over the summer months. This, and the wave of contract renewals that fall due at the end of each December, typically converge to place upward pressure on energy prices and drive volatility.

However, as we know, 2020 is different from previous years. We have seen the COVID-19 pandemic change the nature of energy demand amid temporary business shutdowns and an exodus of people from offices and worksites as they worked from home. Essentially, the pandemic lifted residential energy use as it constrained commercial and industrial use, with overall demand declining.

Over the course of 2020, we have seen electricity prices continuing their downward trajectory that started from its peak in mid-2017, reaching levels that we believe to be at or near the bottom of the current pricing cycle. In recent months we have seen wholesale electricity prices continue to trade sideways in the absence of clear direction on demand levels that will remain opaque until the economy emerges from the pandemic.

The sideways price movements are a function of both supply and demand-side forces acting to keep a cap on prices. Production costs remaining at or near the cost of generation curtailing prices, and current demand levels are influenced by reduced economic activity, the expected limited short-term growth in renewable capacity and increasing roof-top solar capacity.

As a result, far more businesses than previous years have already brought forward their energy contract renewals to take advantage of the lower price environment. This means that fewer businesses will be vying for contracts in the lead up to December 31, reshaping the extent of the typical ‘renewals cliff’.

However, electricity demand will rise over the summer peak demand period, which will lift prices, even if, amid reduced overall demand, there is less price volatility this summer compared to recent years. In fact, AEMO has indicated in a recent report that the reliability outlook has improved for this summer.

As businesses have moved quickly to lock in lower prices, we have also seen contract lengths extending with most businesses renewing contracts out to 2023 and in some cases, 2024. Again, businesses are taking advantage of the current point in the pricing cycle to lock in lower prices over the long-term, ahead of the economic recovery and the likelihood of steadily increasing demand.

Our outlook remains that both wholesale and retail prices will remain generally steady until greater economic certainty returns, notwithstanding seasonal fluctuations. And amid the continued lower price environment and with demand set to increase over summer, there is a substantial opportunity for those who are yet to renew contracts to do so while conditions remain favourable.

Energy Action specialises in achieving significant cost savings and has helped businesses save thousands on their energy bills. If you would like to discuss how you can save energy and reduce costs over summer, call 1300 553 551 or visit https://www.energyaction.com.au.

By Professor Philip O’Connell, Executive Director, The Westmead Institute for Medical Research

Recent weeks have seen new cases of COVID-19 steadily drop across most of Australia, and reports of promising COVID-19 vaccine trials are being cautiously welcomed. While 2020 has been a challenging year for so many, both personally and professionally, it seems that the early, decisive and committed approach taken across Australia to stop the spread of COVID-19 has proven successful.

However, we now watch as a very different situation continues to unfold in the United States and parts of Europe, and this should act as a warning. We cannot be complacent. A vaccine is still some way off, and continued vigilance is vital.

Australia’s success to date is primarily due to its world-leading contact tracing capabilities and its public health response. I am proud to say that The Westmead Institute for Medical Research (WIMR) has been at the forefront of Australia’s COVID-19 research efforts, and continues to play significant leadership roles in these areas.

WIMR is a multi-disciplinary institute, and is home to some of Australia’s brightest, and most talented researchers. This expertise and commitment means that WIMR has been able to pivot quickly, and take a leadership role in Australia’s response to the COVID-19 pandemic.

Contact tracing remains a strong defence against COVID-19, and was especially vital in the first weeks and months of this pandemic. Very early on, a team at WIMR adapted its existing, unique genome sequencing method to specifically target COVID-19. They worked with the public health service to analyse and trace the origins of the first wave of cases and how they evolve over time and from site to site. I am proud to say that this sequencing method is now being used across Australia and the world.

Another WIMR research team who, before the pandemic, were focused on infectious diseases like influenza and sepsis, are now using their experience to develop a COVID-19 blood test. This test would rapidly identify which COVID-19 patients would need to be admitted to hospital for urgent medical treatment, rather than being able to self-isolate or quarantine at home.

A team of globally recognised virologists are using expertise gained in areas such as HIV and shingles to develop a COVID-19 vaccine. Their focus is to develop a vaccine specifically targeted to some of the most vulnerable members of our community – the ageing.

WIMR has initiated a series of events, aimed at business leaders, to provide the most up-to-date information about COVID-19 from reputable and informed sources. The WIMR Director’s Series will feature WIMR’s researchers, as well as respected business leaders, discussing COVID-19. They will unpack the facts and offer insights into the current and potential future impact of this pandemic.

To register your interest in attending one of the WIMR Director’s Series events, please contact Katrina Dowling, CEO of the WIMR Foundation at katrina.dowling@sydney.edu.au; or Amanda Thompson, Strategic Partnerships Manager at amanda.thompson@sydney.edu.au; or phone 02 8627 3000.

Deloitte Access Economics has been a leader in shaping reform debates over many decades. Now we bring our expertise to the wicked problem of climate change – and the economics of it. This topic has been the subject of debate, misconstruction, and genuine complexity.

At the core of the issue on climate change is the assumption that unconstrained emissions (and therefore warming) are compatible with economies which can grow forever. But, based on the science, this is not possible. Yet this has been the benchmark of economic analysis and the basis for assessment of any actions to solve for climate change.

Deloitte Access Economics has constructed a view of the Australian economy where inaction, or mis-action, in preventing climate change causes damage to the Australian economy. Climate change is no longer a scenario, but instead becomes the baseline for the economy.

While inaction will have the effect of curtailing Australia’s economic growth to the tune of $3.4 trillion and 880,000 fewer jobs in just 50 years, there is an upside – a new choice that Australia can make to create a new climate for growth. And the payoff? A bigger economy –$680 billion bigger – with 250,000 more jobs in just 50 years. Download the report

By Matthews Folbigg Lawyers

Caveats are a powerful tool to protect interests in land. When debt recovery is difficult (say for instance because of a COVID-19 moratorium on certain debt recovery actions) having a secured interest in property can be a significant advantage to creditors. But getting the caveatable interest wrong may end up with proceedings in the High Court of Australia and significant legal expenses and the risk of damages to the land owner. This was what faced a trustee in bankrupt in the High Court’s decision in Boensch v Pascoe (2019) 94 ALJR 112 (“Boensch”).

A simple Caveat

In the case of Boensch, Mr Boensch became bankrupt in August 2005. His trustee in bankruptcy identified a property in Mr Boensch’s name (“the Property”), and lodged a caveat.

However, although the Property was registered in his name, it was held by Mr Boensch on trust for his children. He did not have any interest in the land which the Trustee could take. Although the Trustee challenged the existence of the trust, the issue was resolved in favour of Mr Boensch.

A “Reasonable Cause”

Mr Boensch then commenced proceedings against the Trustee seeking compensation for loss he alleged the Trust had suffered by reason of the caveat being recorded on the title to the Property.

A critical question was whether the caveat had been lodged without “reasonable cause” (s 74P(1) of the Real Property Act 1900 (NSW)).

The Full Federal Court held that Mr Boensch’s legal interest had vested in the Trustee and was enough to justify the Trustee lodging a caveat.

The High Court thought this went too far. In the absence of a substantive or beneficial interest in the Property, there was no caveatable interest. However, after consideration of the complicated history of trusts and insolvency the High Court found that there may have been a right of indemnity which belonged to Mr Boensch which would have vested in the Trustee in Bankruptcy and supported the caveat. This right of indemnity and the Trustee’s ‘honest belief on reasonable grounds’ that the Property had vested in him, meant no damages were payable.

A word of warning

Whilst the Trustee in Bankruptcy was ultimately successful in avoiding liability, it took several years and a High Court case to finalise the matter. The bankrupt has since become bankrupt a second time, and it might be considered doubtful whether the Trustee’s costs may be recovered. Lodging a caveat is one of the most effective ways of preventing a disposition of a debtor’s real property, but must be supported by a proper equitable interest in land and in the absence of legal advice about that interest, may lead to significant unrecoverable legal costs, and claims for even more significant damages for a wrongly lodged caveat.

If you would like more information or advice about the lodgement of caveats, please contact:

Stephen Mullette

P: (02) 9806 7459

E: stephenm@matthewsfolbigg.com.au

or

Jeffrey Brown

P: (02) 9806 7446

E: jeffreyb@matthewsfolbigg.com.au

By Blacktown City Council

There is sufficient evidence from government agencies and research bodies, indicating that the future socio-economic environment across Australia will change as a result of the current COVID-19 pandemic.

The damage caused by the pandemic will ripple down through the national and state economies and have the greatest impact at the local level.

Central City district

As a result, Blacktown City, Cumberland City, Parramatta City, and The Hills Councils are looking to plan for the post-pandemic environment in their sub-region of western Sydney. These councils constitute the area designated as the Central City district by the Greater Sydney Commission.

The councils believe this initiative adds value to and informs the current and future work of the Commission.

Extract from the Greater Sydney Commission’s Structure plan for the Central City district May 2018

Research objectives

The 4 councils are managing a research study which will identify the likely effects of the pandemic on our sub-regional economy over the next decade. Such a study will be published and communicated to their local business communities. The results of the study will:

• help the business community plan for the post pandemic environment and make whatever changes they need to their business activities and direction, for their future prosperity.
• assist the councils in the future planning and delivery of services to their communities.

Our team

The councils very much welcome Westpac Banking Corporation as part of their team. Westpac is the financial sponsor to this research, and providing important contributions to the direction and scope of this project.

The councils also welcome the Australian Catholic University, which will provide oversight and peer review of the research being undertaken.

The study

Western Sydney University have been engaged to carry out this project. Their research team, headed by Dr Kathy Tannous, will undertake a literature search review and interview representatives from a range of organisations across the district. From this evidence, they will create scenario-planning modelling which will identify plausible developments over the next decade across the following areas:

• future levels of immigration
• household and business debt levels
• unemployment impacts
• housing affordability
• people movement
• international travel and transport
• population mobility, and
• shifts in scope, timescale and intensity of the overall development in the sub-region.

Outputs and outcomes

The project is intended to deliver the following results:

• a peer-reviewed study, in report format, identifying a socio-economic road map ahead for the sub-regional western Sydney economy.
• inform the Central City district business communities of the likely economic options emerging in the period ahead.
• provide local businesses with the insights to review their business models and plan the future direction for their operations.
• guide the councils in the strategic and community planning of the future delivery of services to their communities in the period ahead.
• promote the sense that the councils and corporate sponsor are providing key leadership and direction for our local economies.

Global events like coronavirus present new challenges, daily. For those working in new ways, and in new environments, it’s important to consider how to maintain productivity under pressure.

Read more here

Macquarie has been providing Business Banking solutions for over 30 years and provides SME clients with tools and strategies to grow and develop their business. You can get regular updates by subscribing to the monthly newsletter, Strictly Business by visiting macquarie.com.au/businessbanking. If you would like to find out more about how Macquarie can support you to take your business further, call Sam McCarthy at our Parramatta office on 0417 518 724 and be connected with one of our banking specialists.

This information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502 (“Macquarie”) for general information purposes only. This information does not constitute advice. Opinions expressed are subject to change without notice. No member of Macquarie accepts any liability whatsoever for any direct, indirect, consequential or other loss arising from any use of this information.

William Buck's Jumpstart Series is a podcast geared towards startups, scaleups and anyone interested in the Tech industry. Episodes are bite-sized (no more than 15 minutes long) and focused on providing actionable lessons for founders to implement right after listening.

Hosts, Jack Qi, Director, Technology Tax, Mark Calvetti, Director, Corporate Advisory and Nick Kenny, Director, Business Advisory, don’t sugar-coat it when it comes to growing your business. Each specialist shares their own unique views on the trending topics and biggest learnings they’ve seen in the industry and the banter between them is fantastic.

Sitting down with investors, founders and experts, they dive into the factors that matter most to startups and scaleups and question what works and what doesn’t. They talk about how some of the best tech companies got to where they are and uncover the financial strategies to successfully scale a tech company.

Taking a different spin to others, they’re determined to break the accountant stereotype and bring you a technical podcast with personality. If you’re looking for an Australian podcast that discusses the realities of managing businesses finances, then the Jumpstart series should be on your list.

The Jumpstart Series is available on Spotify, Google & Apple. Click here to find out more or to begin listening.   

Parramatta has a new quality newspaper, The Parramatta Times.

The Parramatta Times has been developed in conjunction with respected Western Sydney media company, Access News Australia, publishers of Western Sydney Business Access (WSBA).

As the regional heart of Greater Western Sydney, Parramatta is the driving force and economic heart of Australia’s third largest economy.

With a GRP topping $27B PA Parramatta boasts a dynamic property sector, thriving retail trade, vibrant dining and entertainment scene, health employment sector, growing list of visitor attractions and an expanding education sector.

Parramatta is a diverse community of over 200,000 people. The Parramatta Times is the print and digital media resource that enables residents and visitors to better engage with the city’s diverse community, its progress, business sector, opportunities and lifestyle.

Editor, Michael Walls said The Parramatta Times is a quality media voice that champions local businesses, community interests and informs the city’s diverse community.

“With so much happening in Parramatta it’s ridiculous that there has not been for some time a dedicated independent printed newspaper to showcase our city to residents and visitors,” said Mr Walls.

Mr Walls said The Parramatta Times is produced by local journalists with years of experience covering Parramatta.

“Through our association with Parramatta over many years we’ve developed a strong relationship with the city and its businesses. The Times is created by journalists with many years’ experience in reporting on Parramatta for major news organizations. Our local knowledge is first class.”

President of Parramatta Chamber of Commerce, Schon Condon said the Parramatta Chamber remains staunchly behind the operation of an independent Parramatta newspaper.

“I have made that statement and will make it again. With the abandonment of the majors the time is both right and ripe! Thus we believe that all of Parramatta’s major players the Chamber, The Council, Universities and others should stand behind the creation of a paper for the city that says what the City is saying not, what we are being told to think by outsiders.”

The Parramatta Times is the media partner for the Parramatta Chamber of Commerce and will be published in print and digital formats.

For a short time, The Times is offering foundation advertiser packages for businesses looking to reach Parramatta diverse community.

Email: julie@accessnews.com.au

Visit: www.parramattatimes.com.au

In 2019, renewable energy made up almost a quarter of Australia’s total energy generation – the highest of any year to date¹. A significant driver of this demand is the uptake of solar energy. Businesses and households alike continue to install rooftop solar as more people chart a course towards net zero emissions. This is expected to continue apace.

Australia has the highest uptake of residential solar energy globally, with almost 2.5 million homes now having rooftop solar² nationwide. The number of businesses installing solar is growing too. Energy Action meter data shows that 5% per cent of its [10,000] commercial clients have on-site generation, including rooftop solar, and that’s up substantially from only a few years ago.

Putting Net Zero into action

The quest for net zero emissions is now firmly on the minds of Australian businesses. In fact, a survey conducted by Energy Action in March this year showed that four in five businesses across the country agree that they need to take action on climate change.

However, just under one in four said they were actually incorporating net zero initiatives into their commercial strategy³. Those that have were driven by a combination of government support, cost savings and stakeholder demand.

The use of solar energy generated through a rooftop system produces no direct carbon emissions and has formed a core part of many businesses’ net zero strategies. Furthermore, there are untapped opportunities for others to follow in their footsteps.

Driving better outcomes in the solar market

Despite growing demand for solar energy, there are a range of barriers that can prevent businesses from making a good decision. The commercial solar market has matured rapidly, accompanied by an influx of solar engineering procurement construction (solar EPC) providers entering the market. Navigating a plethora of options has tested some buyers’ market knowledge and slowed decision-making, and in some cases, eroded trust.

The first step is ensuring that the sizing of the system is optimised for the roof space and load. Doing this effectively relies on quality data, particularly to maximise the return on investment and avoid over-capitalising. This can include identifying the right components for the right price and the Clean Energy Council certifies solar componentry into quality tiers, which can help make it simpler to compare components and warranties.

“Obtaining an accurate and independent sizing and performance specification means that buyers can compare apples with apples when it comes to evaluating offers from suppliers,” says Energy Action’s Chief Executive Officer, John Huggart.

Energy Action has identified a range of solar EPC providers that can provide high-quality systems to a consistent standard. To distinguish between the top providers and those that are still developing a track record, businesses should seek assistance from a knowledgeable partner like Energy Action.

“Energy Action understands the solar EPC market and works with providers that deliver great projects every day, whether in particular regions or nationwide. It’s important to get it right, because poorly delivered projects can put your facility at risk.”

To ensure that clients have a highly transparent view of the solar market, and can make an educated decision about the quality and price of their optimal system, Energy Action has just launched the Energy Action Solar Auction.

“The market demand for solar is surging, and more businesses are seeing the benefits. That’s why we introduced an innovative solution that will maximise the investment in solar and de-risk the process. Ultimately, our role is to remove the friction from the transaction to deliver a better outcome. We explain the energy costs, emission reduction opportunities and project risk. We link our clients to high-quality suppliers, and then we create a marketplace where competitive bidding can drive the price down.” Mr Huggart says.

The Energy Action Solar Auction uses technology to model the optimal on-site solar system and requirements, and invites bids from a panel of more than 15 top solar EPC providers. Businesses can run their solar system procurement process end-to-end through an online portal, and can select their preferred contract.

In an environment where reducing carbon emissions and energy costs is now the expectation of every company board, on-site solar generation can play a crucial role. But navigating the market isn’t always easy. For businesses weighing up the best options for quality and price, you can find out more information here.

¹ https://www.cleanenergycouncil.org.au/resources/resources-hub/clean-energy-australia-report

² https://www.energy.gov.au/households/solar-pv-and-batteries

³ Energy Action online client survey, March 2020