Posted by Big Gav in australia
Energy Action, a firm that operates an auction system for contracts for large energy users and an energy efficiency advisory business is considering an IPO in the next 12 months. The company owns an operates the Australian Energy Exchange, which has auctioned nearly $5 billion of energy contracts over the past five years, and whose services are increasing in popularity as energy costs soar.
The company said the University of Sydney recently became the first educational institution to auction its electricity contract, and secured savings of $1.38 million, or around 7.5 per cent of its costs over an 18 month period, from the process. The university says it will use the money saved investing in other energy management solutions.
Energy Action CEO Valerie Duncan said the exchange, which can auction contracts of 160MWh or more, is one of the industry’s best kept secrets, even though it has been in operation for the past decade and conducts up to 14 auctions a day. Duncan said the company has been growing at around 40 per cent per annum over the last five years, and forecasts annual revenue of around $12 million, although the energy management business is the larger of the two subsidiaries. The company has retained Moss Capital to advise on its listing options.