This document provides an overview of the electricity market in New South Wales and Queensland, including the key parties involved such as the Australian Energy Market Commission, Australian Energy Regulator, and Australian Energy Market Operator. It also compares the transmission networks and businesses of TransGrid and Powerlink, noting that Powerlink had higher income, EBIT, profit, and ROA in 2013 while TransGrid had a slightly higher ROE and system reliability. The document includes information on electricity demand forecasts, generation, distribution networks, and regulatory policies in NSW and QLD.

1. Overview
1
• This document is based on preliminary research on electricity market in NSW and QLD. It
captures the parties involved in the electricity network chain excepting the retailers.
• At this stage I have not done any analysis on the industry to draw inference on future
trend and opportunities. However, I have tried to compare the financial and operational
performance of the transmission companies in QLD and NSW.

2. Policy & Regulation
Australian Energy
Market Commission
(AEMC)
The AEMC became responsible for rulemaking, market development and
policy advice on the National Electricity Market (NEM) and natural gas
pipelines services and elements of the broader natural gas markets from 1 July
2009.
Australian Energy
Regulator (AER)
The AER has responsibility for the enforcement of and compliance with the
National Electricity Rules, as well as responsibility for the economic regulation
of electricity transmission and distribution. The AER issues infringement
notices for certain breaches of the National Electricity Law and Rules, and is
the body responsible for bringing court proceedings in respect of breaches.
Australian Energy
Market Operator
(AEMO)
The AEMO operates the National Electricity Market (NEM) as well as the retail
and wholesale gas markets of south-eastern Australia from 1 July 2009. The
central coordination of the dispatch of electricity from generators is the
responsibility of the AEMO.
National Electricity
Market (NEM)
The NEM spans Victoria, Queensland, NSW, ACT, SA and Tasmania. Over 275
registered generators across the NEM offer to supply power and their
production is bought by retailers.
2Source: Infrastructure Report Card Queensland 2010, Engineers Australia

3. Structure of the National Electricity Market (NEM)
3Source: Infrastructure Report Card Queensland 2010, Engineers Australia

4. NEFR 10-yr Growth Projection of NEM MD
Source: National Electricity Forecasting Report 2013, AEMO 4
2.2%
1.1%
1.4%
0.8%
1.3%
3.2%
1.0%
0.9%
0.0%
0.1%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
QLD NSW VIC SA TAS
Averageannualgrowthrateto2022-23
MaximumDemand(MW)
Comparison of 2012 NEFR and 2013 NEFR 10-year growth in NEM MD
2012 NEFR 2013 NEFR
QLD NSW VIC SA TAS
2012 NEFR 2.2% 1.1% 1.4% 0.8% 1.3%
2013 NEFR 3.2% 1.0% 0.9% 0.0% 0.1%

5. Electricity Forecast Report
Source: National Electricity Forecasting Report 2013, AEMO 5
State Forecast
Queensland • Queensland’s annual energy for 2013–14 is expected to be 3.4% lower than the 2012
NEFR forecast due to large new industrial projects not coming online as early as
expected.
• Average annual energy growth over the 10-year outlook period is forecast to be 3.1%,
higher than the 2.5% forecast in the 2012 NEFR, due to strong population and economic
growth and an easing in electricity prices after 2014–15.
• Queensland’s MD (10% probability of exceedance, or POE) is expected to increase by an
annual average of 3.2% over the 10-year outlook period under the medium economic
growth scenario, with the biggest increase occurring in the first half of the outlook period
due to the revised timing of LNG projects.
New South Wales • NSW’s annual energy for 2013–14 is expected to be 2.2% lower under the medium
economic growth scenario than forecast in the 2012 NEFR.
• Average annual energy growth over the 10-year outlook period is forecast to be 0.6%,
down from the 1.1% forecast in the 2012 NEFR. Rising population driving an increase in
residential and commercial (including small industrial) electricity usage in New South
Wales is behind the subdued annual energy growth over the next decade.
• New South Wales MD has been reduced by 256 MW in 2013–14 and is now forecast to
grow at an average annual rate of 1.0%, a slight decrease from the 1.1% forecast in
2012. This is due to increases in energy efficiency savings and a decrease in large
industrial consumption.

6. Queensland & NSW Principle Generation
Businesses 2011-2012
6
Queensland Generation
(GWh)
Share of
Australian %
AGL Energy
Siemens
839 0.33
BG Group 5011 1.97
Callide 570 0.22
CS Energy 11633 4.57
Ergon Energy 14 0.01
ERM Power 984 0.39
Millmerran 5887 2.31
Origin Energy 5124 2.01
Rio Tinto 1360 0.53
Stanwell
Corporation
15519 6.09
Tarong Energy 9746 3.83
NSW Generation
(GWh)
Share of
Australian %
Acciona Energy 151 0.06
Delta Electricity 21334 8.38
Eraring Energy 12220 4.80
Infigen Energy 413 0.16
Macquarie
Generation
26146 10.27
Marubeni 1001 0.39
Origin Energy 271 0.11
Redbank Energy 1039 0.41
Snowy Hydro 1887 0.74
TRU Energy 2332 0.92
Source: Energy in Australia 2013 by Bureau of Resources and Energy Economics

7. Intrastate Transmission Network in Queensland
7
Queensland’s intrastate transmission network is owned, operated and managed by Powerlink, a Government-
owned corporation. Powerlink is also responsible for planning and developing Queensland’s transmission
system to supply high voltage electricity within the State and to facilitate the operation of the National
Electricity Market. It has assets worth over $5.2 billion.
Source: Infrastructure Report Card Queensland 2010, Engineers Australia
Voltage Asset
High Voltage Overhead 8,950km route, 13,091km circuit
High Voltage Underground 7km route, 15km circuit
Transformers 183
Circuit Breakers 1,127
Substation/switching stations 109

8. Intrastate Transmission Network in NSW
Source: Infrastructure Report Card NSW2010, Engineers Australia 8
NSW’s intrastate transmission network is owned, operated and managed by TransGrid, a NSW State-owned
corporation. It is also responsible for planning and developing the NSW transmission system within the State
and to facilitate operation of the National Electricity Market. It has assets worth over $4.2 billion.
Voltage Asset
High Voltage Overhead 12,445km
High Voltage Underground 47km
Substation/switching stations 85

9. Distribution Network
Source: Infrastructure Report Card NSW & QLD2010, Engineers Australia 9
Queensland ENERGEX Ergon Energy
Ownership Government Government
Network service
area (sq km)
25,064 1,698,100
Number of
customers
1,294,464 774,100
Energy delivered
(GWh)
22,449 14,130
Asset Utilisation % 26.9 22.1
Distribution Losses
%
5.66 5.70
NSW Country
Energy
Energy
Australia
Integral
Energy
Ownership Government Government Government
Network
service area
(sq km)
Number of
customers
786,241 1,591,372 859,718
Energy
delivered
(GWh)
13,076 32,289 18,235
Asset
Utilisation %
System Loss
Factor %
7.9 4.66 5.18
Infrastructure Characteristics – June 2009

10. Transmission Business Performance Comparison-
2013
Source: Annual Reports 2013 of TransGrid and Powerlink 10
TransGrid Powerlink
Income ($M) $887.9 (+$55.9 over ‘12) $1,312.9 (+$394.9 over ’12)
EBIT ($M) $394.92 (+59.31 over ‘12) $627.98 (+$360.27 over ‘12)
Pre tax Profit Margin % 44.5% 47.8%
Profit for the period ($M) $247.59 (+ $47.77 over ‘12) $544.66 (+$360.63 over ’12)
ROA 8.1% 7.4%
ROE 11.4% 8.4%
System Reliability 1.1 1
Network Availability 98.9% 98.7%
Workforce (FTE) 1083 1,069