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LogicaCMG systems now operate 75% of the contestable gas region in Australia

  • 04 August, 2004 09:34

<p>Sydney, Australia, August 4, 2004 – LogicaCMG today announced the completion of the $6 million retail gas market system for Retail Energy Market Company (REMCo), which represents the gas industry in Western Australia (WA) and South Australia (SA). The project commenced at the end of July 2003 and took eleven months to complete. The Western Australian market commenced operation on 12 July, and in South Australia on 26 July 2004. The start of these markets, in addition to those existing in New South Wales (NSW) and the Australian Capital Territory (ACT), means that LogicaCMG systems now operate three quarters of the contestable gas region in Australia.</p>
<p>Until recently, consumers had to buy gas from the incumbent provider. However, with the WA and SA state governments deciding to introduce gas deregulation, REMCo needed to find a cost-effective way of allowing competition to happen. The new centralised system allows gas retailers and gas network operators to exchange information so that WA and SA consumers can now choose from a selection of suppliers.</p>
<p>Supported functionality includes:
• Registration of, and changes to, information on all gas delivery points facilitating the process for customers to choose their gas retailer
• Providing forecast of total gas usage in each network section to assist retailers in making accurate nominations for their gas usage
• Estimation of daily gas usage by basic (non-daily metered) delivery points and reconciliation of estimated daily usage with actual usage (derived from meter readings) over time
• Management of a Swing Service ‘bid stack’, which allows gas suppliers to bid to supply any additional gas requirements in a pipeline, and calculate the commercial results of the swing service used
• Provision of intra-day reporting of gas usage to assist retailers in making renomination decisions.</p>
<p>REMCo selected LogicaCMG to build the system because of its experience in building and operating the retail gas market in NSW and the ACT. “REMCo wanted to ensure its system was based on an existing operational system, to minimise the risk and costs of developing the Western Australia and South Australia solution,” said Greg Forbes, managing director, energy and utilities, LogicaCMG in Australia.</p>
<p>“The project also faced challenges along the way, with the market rules changing and maturing over the development period. The development team needed to remain flexible and responsive to these changing requirements, as the delivery date could not be allowed to slip,” continued Forbes.</p>
<p>Steve Thomson, chief executive officer, REMCo, said “We chose LogicaCMG because of its experience in building and operating the New South Wales and the Australian Capital Territory gas market system, so we were expecting the Western Australia and South Australia system to meet our needs.”</p>
<p>“Throughout a very challenging project delivery, LogicaCMG exceeded our expectations with the continuously high standard of service provided. Even in the face of changes to the rules and requirements right up to the last minute, the team remained helpful, cooperative and responsive, working hard to ensure the system was delivered on time and within budget. REMCo is looking forward to continued excellent service from LogicaCMG in support of the system” explained Thomson.</p>
<p>The REMCo project involves LogicaCMG managing the system for an initial five-year period. The solution will be based in LogicaCMG’s datacentre, with the same team operating both the REMCo retail gas market for WA and SA and the Gas Market Company (GMC) gas market for NSW and ACT. The contract covers the management and maintenance of hardware and the application software, the operation of a help desk for participants and participant support, as required.</p>
<p>“By having one team that already has a strong understanding of operating a retail gas market, REMCo gets the direct benefit of LogicaCMG’s learnings and experiences with Gas Market Company. This is yet another example of the strength of LogicaCMG’s services offering. We continually strive to understanding our customers business needs, so that we can complement and support their core business processes,” concluded Mr Forbes.</p>
<p>NOTE TO EDITORS:</p>
<p>About LogicaCMG
LogicaCMG is a major international force in IT services and wireless telecoms. It provides management and IT consultancy, systems integration and outsourcing services to clients across diverse markets including telecoms, financial services, energy and utilities, industry, distribution and transport and the public sector. Formed in December 2002, through the merger of Logica and CMG, the company employs around 20,000 staff in offices across 34 countries and has nearly 40 years of experience in IT services. Headquartered in Europe, LogicaCMG is listed on both the London and Amsterdam stock exchanges (LSE: LOG; Euronext: LOG). More information is available from www.logicacmg.com
About REMCo
REMCo was established in 2002 by AGL, Alinta Sales, AlintaGas Networks, Envestra, Origin Energy and TXU to develop and administer a scheme for retail competition in the gas markets in South Australia and Western Australia. REMCo will deliver practical and cost effective retail competition to nearly 900,000 gas customers in these states on a cost recovery basis. Since its establishment REMCo's membership has grown to include CMS Energy, EnergyAustralia and Western Power Corporation. Torrens Transit, a public transport operator in South Australia, has also joined REMCo as an Associate Member.</p>
<p>From the go live dates in each jurisdiction, gas retailers will be able to compete for small customers without requiring interval metering, making competition for these customers cost effective. Large customers will continue to require interval-metering equipment. REMCo is the first gas market scheme that involves cooperation between two significant gas markets. Without the cooperation between these gas markets, full retail competition could not have been cost-effectively delivered to customers in South Australia and Western Australia. More information is available from www.remco.net.au</p>
<p>Press Contacts</p>
<p>Angela Eggleton
Account Executive
Text 100
P: 02 9956 5733
E: angela.eggleton@text100.com.au</p>

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