Large Energy Users feeling the strain (such as at Tomago)

Yesterday (Friday 6th June 2025) I was pleased to be able to attend a Bonus Research Seminar organised in Brisbane by the CAEEPR (Centre for Applied Energy Economics and Policy Research).

Amongst the presentations at this seminar, Prof Magnus Soederberg provided a presentation of work done to date under a heading of ‘The hidden cost of price variability’ – as it pertains to large energy users across the National Electricity Market (with the research, to date, focused on large energy users in Queensland).

1)  There was a bit of discussion afterwards about ….

… whether
(a)  it is the average prices (which have obviously stepped up in recent years)
(b)  or the level of volatility/variability
… that hurts energy intensive energy users more.

2)  That’s part of what I was starting to explore when I posted ‘A review of the traditional form of Demand Response (part 1)’ the evening before my presentation at the EUAA conference.

3)  I’ve put Magnus in touch with some key people representing those types of energy users.

Perhaps, at some point, Magnus will be able to share more of his research here?

But it was uncanny timing I read this morning yesterday evening’s article ‘Rio pushes for ‘eye-watering’ Tomago bailout’ published by Ryan Cropp and Phillip Coorey

Now, readers should try to keep both of the following in mind:

1)  Amongst other attendees, there were representatives from Tomago (and other smelters) at the recent EUAA National Conference in May 2025.   The concerns voiced in the article (and the focus of Magnus’ research) were certainly raised at the conference by many speakers (and privately by a number of energy users I spoke with);

2)  However also keep in mind there’s a negotiation process underway to secure longer term power supplies to keep the smelters operational into the 2030’s  … and communications via the media (perhaps like via this article from ‘sources familiar with negotiations’) might be part of the approach being taken there.

Challenging times ahead…