During the year electricity price risk exposure for our retail businesses has received some attention. Over the past three years, prices in the National Electricity Market (NEM) on the east coast of Australia have surged.
To manage the risk associated with fluctuating energy costs some of our Divisions work together to purchase electricity. This function enables the Divisions to actively manage electricity price exposure rather than locking in a fixed price that is struck at the commencement of a contract for the duration of the contract.
To optimise electricity consumption, Coles, Kmart and Target use an electricity servicing centre. Through the use of smart meters monitoring store electricity usage against a base load profile, the energy centre is able to report back to store maintenance technicians to rectify any anomalies. Increasingly, Building Energy Management Systems (BEMS) is rectifying anomalies in near real time.