Last Day in Melbourne

I only have one meeting today because I am leaving Melbourne and heading to Brisbane. I have really enjoyed Melbourne. There is a great energy here that is felt in the cafes, restaurants and pubs, but more importantly on the streets. The streets are teeming with people walking, riding their bikes, getting on the tram. All with singularity of purpose, but with awareness of the surroundings that is absent in some US cities. People work hard here, but they also take the time to enjoy a coffee during the day, or walk with colleagues and discuss the days business at a slower pace. There were times here that I felt like I was in Chicago or New York, but then I would turn the corner and feel like I was in Paris or Prague. I hear that Brisbane is more laid back and that Sydney is a little harder to walk around but more beautiful. I am looking forward to it…also, only a week until Amy arrives!!

My meeting today was with Nino Ficca, who works for SP AusNet. SP AusNet owns the physical poles and wires as well as the pipelines for the Victorian electricity and gas market. Here generators are separated from distributors and retailers. In reality, SP Aus Net will not really be affected by the introduction of the cap and trade system. The renewable energy producers are locating their facilities near the grid so very little infrastructure has to be built to connect to the grid and the current coal producers will get permits for their production which will increase the retail costs but not really affect the distribution costs. However, some of the regulatory schemes may impact the cost of doing business, so they are watching very closely a decision that is expected to come out today from the Australian Energy Regulator (AER) setting capital requirements for the next five years.
Also, yesterday the Liberal Party (the conservatives and opposition Party) announced the findings of an independent review that examined the cost of the Emissions Trading Scheme and its effect on business. The review found that it would impact several business sectors very hard and could lead to the loss of jobs and some businesses closing. The Liberal Party is going to use this review to demand legislative changes in the ETS. The parties have begun to stake out their positions and gearing up for the political fight over the Carbon Pollution Reduction Scheme.