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Case Study A
In 2016, Alinta Energy, owners of the Northern Power Station, closed the Port Augusta’s coal-fired plant. For more than 25 years (Dow, 2010), ash from the plant has been stored in an ash dam within the grounds of the station. For almost as long, dust has spread over the town of Port Augusta (Jones 2017; Wills, 2017). The issue has come to a head in January 2017 when dust mitigation strategies failed resulting in large plumes of coal ash covering the town and causing health concerns and anxiety amongst residents (Owen, 2017; Wilkins 2017).
1. The issues of the situation from a management accounting perspective.
2. What management accounting tools or techniques could the Council use to determine the financial impact of dust mitigation outside the coal ash site?
Target Audience: Management team from Port Augusta City Council
Case Study B
Since the closure of the Northern Power Station, South Australia has experienced a series of significant power interruptions including a state-wide disruption in 2016 which severely affected telecommunications, hospital services, and traffic control. This event has highlighted the precarious nature of South Australia's energy supply which relies, in a substantial part, on the interconnector to Victoria. South Australia has also seen significant variations to the pricing for businesses, with wholesale prices peaking at $18,000 per kilowatt-hour, far exceeding prices in other states.
1. What is the effect of fluctuating electricity prices and intermittent interruptions to supply for small to medium businesses?
2. What management accounting tools or techniques could these businesses use to determine the financial impact of the current South Australian situation?
3. What recommendations could be made for the control of this cost?
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