About Michael Williams

Michael Williams is an experienced manufacturing operations executive who has had more than 30 years working in energy-intensive industries and who has led highly successful innovative energy cost reduction strategies in Australian businesses to significantly reduce energy costs. Michael is passionate about keeping Australian manufacturing businesses competitive and profitable in an increasingly competitive world.

Anatomy of a South Australian Electricity Price Spike 26th April 2018

The month of April 2018 saw an increase in the average SA electricity pool price due to a number of high price spikes on the 26th April. The average was $98.37/MWh for the month compared with the previous month of March at $80.70/MWh.

As an end-user exposed to the pool price, with the ability to curtail load in the event of high price spikes, we are interested in the underlying half-hour spot price action and not […]

By | 2018-05-20T07:29:55+00:00 May 20th, 2018|Perspective|

The Eight Most Common Mistakes When Buying Electricity

The traditional approach to buying electricity has simply been to see it as any other purchase: businesses would try to secure a good price and good terms, but there was little or no thought given to energy as a strategic issue, despite its importance to many businesses. But the traditional approach to buying electricity almost guarantees locking in much higher electricity costs than can be achieved with the more modern, innovative and sophisticated methods we […]

By | 2018-05-13T06:11:36+00:00 May 13th, 2018|Perspective|

The 9-Step Electricity Cost Reduction Framework

This post is taken from Chapter 3 of my new book Power Profits – A Comprehensive 9-Step Framework For Reducing Electricity costs and Boosting Profits.

A framework provides structure, logic, and a sequential process that can be followed by anyone. This 9-Step Electricity Cost Reduction Framework has been used successfully in businesses in which I have had the responsibility for managing the operations, as well as in client businesses where I have assisted in helping […]

By | 2018-04-22T04:23:33+00:00 April 22nd, 2018|Perspective|

Pool Pass-through and DSM Opportunity and Risks in Victoria

This is the last of an initial series of articles about the opportunities for end users in the mainland regions of the National Electricity Market to save costs by purchasing electricity at pool prices and adopting a Demand Response strategy to save more. The previous articles can be found through the following links for South Australia, Queensland and New South Wales. This week we have a look at the opportunity in Victoria.

Table […]

By | 2017-08-08T03:26:10+00:00 July 21st, 2017|Perspective|

Electricity Pool Pass-through and Demand Response Results for Q1 2016

In my previous articles on electricity pool pass-through and Demand Response (see articles for SA,QLDNSW and VIC) I presented historical pool price data over the last two years and compared that with indicative retail pricing to indicate the size of the cost saving opportunity.

In this article I present how a pool pass-through plus demand response strategy would have performed for different load profiles in the first quarter of 2016 for the mainland States. I […]

By | 2017-08-08T03:26:02+00:00 July 21st, 2017|Perspective|

Pool Pass-through and DSM Opportunity and Risks in New South Wales

Last month I wrote about what happened with pool prices over 2014-15 in South Australia and Queensland and the opportunity for savings with pool price pass-through strategy and DSM. This week we will have a look at the opportunity in NSW based on 2014-15 historical data.

Table 1 shows that NSW and VIC have been the two regions that have consistently had the benefit of relatively low and stable prices over the last, almost […]

By | 2017-08-08T03:31:45+00:00 March 17th, 2016|Perspective|

Pool Pass-through and Demand Response – Opportunity and Risks in Queensland

In early February I wrote this article about the electricity cost tsunami hitting SA businesses and what they could do to avoid the enormous price increases.  I followed this up this month with a review of what January and February would have delivered a spot-exposed business in SA, in terms of benefits.

I received a lot of feedback about these articles including questions as to what the minimum load threshold for this strategy to be effective is and would it […]

By | 2017-07-24T07:55:31+00:00 March 7th, 2016|Perspective|

The Levee Has Broken in SA – Save Yourselves By Jumping in the Pool

I have written previously about the coming energy cost tsunami in WattClarity http://www.wattclarity.com.au/2014/10/when-the-levee-breaks/ Well, the electricity levee in South Australia has finally broken after severe cracking and the resultant tsunami is now swamping business consumers coming out of contract in 2016. Prices have almost doubled from the already high level they had been previously and customers weren’t expecting it.

Figure 1 shows the Calendar Year 2016 base futures price history up until 31 October 2015. Businesses that […]

By | 2017-08-08T03:44:39+00:00 February 1st, 2016|Perspective|

What would the benefits have been, with spot exposure and Demand Response, in SA for January and February 2016

1 January 2016 was the start date for the new “high price” contracts for SA business consumers that renewed their retail supply contracts in the second half of 2015. Quite a few consumers decided not to lock in the high fixed retail pricing but instead adopt a pool price pass-through arrangement with an accommodating retailer.

So how would have those consumers fared over the first two months of the year?

Figure 1 – Time Series Plot […]

By | 2017-08-08T03:36:50+00:00 January 7th, 2016|Perspective|

When The Levee Breaks

Recently there have been many news stories and conference papers calling for the Government to save businesses from rising electricity and gas costs otherwise they will “go under”. In fact, all sectors of the Australian economy are starting to feel the effects of an energy cost tsunami coming towards them. The Eastern States are starting to see up a twofold increase in natural gas prices as a result of the burgeoning LNG export industry buying […]

By | 2017-08-08T03:34:11+00:00 October 8th, 2014|Perspective|