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	TITLE: Markets in Focus - Electricity Financial Markets
CE: 6.5hrs	CONTACT: Jason Sheil | TEL: 02 9776 7914
TIME: 9:00am - 4:30pm	PROGRAM OUTLINE
FEE: M $572 inc GST  | NM $715 inc GST	FACILITATOR: Energy Edge Pty Ltd
DATE: SYDNEY | 24 August 2010 DATE: MELBOURNE | 21 September 2010 DATE: Brisbane| 24 November 2010

 M = Member, NM = Non-Member

overview

Electricity supply is one of the largest industries in Australia. About 196,000 gigawatt hours (gw) of electrical energy valued at approximately $11.5 b was traded in the NEM (National Electricity Market) during 2006-07. Its contribution to Australia’s economic development is of even greater significance, given the importance to industry of cheap, reliable energy. The year saw a strong continuation of the shift towards shorter maturities with 70% of the traded volume relating to a period of less than 12 months. This trend is symptomatic of the level of market uncertainty that is associated with the introduction of an Emissions Trading Scheme, possible ownership changes of the NSW Government owned participants and the roll-off of the Electricity Tariff Equalisation Fund Scheme in NSW (source: NEMMCO, 2007, Annual Report) (source: Australian Financial Markets Report).

outcome

The purpose of this full-day workshop is to provide a snapshot of the fundamentals of the electricity spot market and how it works to new participants. If you are new to a role that exposes you to electricity financial markets, or you would just like a better understanding of how this market operates then this workshop will help. It will de-mystify this market, introduce you to some of its key products and how they work, discuss typical participants and trends in their participation, and explain current market developments and their possible implications for the Australian electricity market.

The format of this workshop is practical and interactive, with activities designed to engage participants in deriving hedging outcomes using basic instruments, as a way of understanding how the market operates and draws upon the knowledge and market experience of the facilitator, an ex-practitioner with a wealth of experience in trading these financial products in Australian electricity markets.

Participating in this workshop will equip you to:

• explain the core concepts involved in Australian electricity financial markets, and the fundamental terminology used
• discuss the features of the different financial instruments employed as risk management tools, including swaps, caps, futures and options
• describe the typical market participants and build an awareness of the goals behind their participation, be it hedging or speculating
• undertake some basic calculations to enhance your understanding of how these products work
• apply the products described to given scenarios to predict a possible outcome when used by specific participants
• describe the deal cycle involved in the sales and trading of these products
• discuss how this market is evolving in light of regulatory action, and the possible impacts

recommendation

There is no pre-requisite knowledge for this course. However, participants who wish to augment their understanding of the fundamentals of Australian financial markets are recommended to undertake AFMA’s Fundamentals of Financial Markets & Regulation online training.