Electricity Procurement in Australia-Australian power industry

electricity procurement practices in australia

Outline current electricity procurement practices for different organizations in Power industry of Australia. (Project verses operating activities)

There are the three main products of this industry in Australia. These Electricity Procurement in Australia are described below step by step.


  • Variable cost
  • Fixed cost
  • Skilled employees
  • Machinery
  • Raw material

Maintenance and operating activities:

  • Maintenance raw material cost
  • Skilled employees cost
  • Machinery cost
  • Risks and insurance costs
  • Operational cost
  • Rebuilding setup cost
  • Raw material

These are the outline of Electricity Procurement in Australia which is used in distribution transmission, smart meter installation and street light operations. There volume can be different according to the product detail but method will closely remains the same. Further it is described below in detail according to product wise.

Electricity Procurement practices in power industry of Australia ( project verses operating activities)

Let’s talk about the main distribution setup by applying the Electricity Procurement in Australia through project verses operating activities. When we will talk about the electricity transmission in Australia it indicates about the business which is involve in high voltage transmission of electricity. This approach has required a large amount of capital because it gets electricity transmission from electricity producing place. It can be anywhere in the Australia. To provide electrical lines to all over the country you must have huge resources to provide electric lines to the nearest place to the city or town.

For this purpose, you will need a grid to transform high voltage into three phase connections. These three phase connections provide its transmission to different businesses at long distance. For This purpose, electricity transferred to high voltages like 11 KV and then transferred again into low voltages before its usage.


For this purpose you will need qualified engineers, heavy machinery, skilled labor and huge volume of silver lines, it can be in millions of meters which is too much costly. This task will consume years to its completion during this time you will have to need a large amount of capital to give salaries to your employees, meet the risks and hazards faced during this project. So this type of project have budget in billion and only those companies can participate in this which are financially strong.


Whenever transmission project has installed, after that the procurement company will need the team of skilled employees and engineers to make practices. Maintenance system carried out on continuous basis.

During maintenance sometime swear problem occur due to which that part of line cannot be repaired. In this condition you will have to bear the cost of a new setup for that part of disturbed line. When your transmission become fully function you will have again need of skilled team and machinery which will overlook this project.

Operating activities:

When the electricity becomes accesses able to every one for use then you will have to setup a calculation measuring tool which will help you to generate bill of individuals according to their usage. For this purpose too you will have to install smart meters which will give the real time usage along with it time and location. Contractor Company will have again a large amount of capital to install smarts meters in all over the country but less than that company which is transmitting electric line from its generation hub. Then a team is required to manage its operations and billing generation & distribution. It will also cost you continuously. Whenever more advanced technology has introduced you will have to upgrade the whole billing system to that technology. Again this expense is necessary  but it is a fixed expense.

In the last segment street lighting operations, Procurement Company will have need of skilled labor but not expense. This has low budget and its has less maintenance cost. Its operations are easy to handle and less expensive.



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One comment on “Electricity Procurement in Australia-Australian power industry


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