News

February 24, 2020

Full-year highlights

Customer

  • Relaunched retail product suite on 1 July 2019 under Total Plan range, to provide customers with new, simpler offers
  • Introduced hassle-free benefits for customers via fixed-price energy plans and removal of conditional discounting and exit fees
  • Invested $65 million in IT as part of a broader program so consultants can solve customers’ problems quicker, supporting a 4.2 point increase in customer satisfaction

Energy

  • Invested more than $180 million to maintain and upgrade power plants, providing an additional 70 megawatts of electricity to support the national energy system
  • Completed a full year operating the largest battery trading portfolio in the NEM, providing combined storage of 80 megawatt-hours
  • Exceeded 20,000 customer participants in Australia’s biggest demand response program (with 14,000 enrolled in 2019)

Corporate

  • Best-ever safety performance across the business with 1.99 injuries per million hours worked and 112 consecutive days without a recordable injury
  • Bought 49 per cent stake in solar and LED lighting company, Echo Group, to deliver commercial and industrial customers with efficient, cutting-edge technologies
  • Published first disclosure as a signatory to the Energy Charter, a landmark initiative uniting the energy industry to deliver better service for Australians

EnergyAustralia, one of the country’s leading energy retailers, today announced it contributed operating earnings of A$295 million to owner CLP Group in the 12 months ended 31 December 2019, down from A$574 million a year ago.

The results reflected ongoing, intense competition for household and business energy customers and impacts from the introduction of regulated retail price safety nets in the middle of 2019. As previously announced, the new price safety nets led to a one-off, non-cash impairment of A$1.2 billion to the goodwill attached to the EnergyAustralia retail business.

The company also reported lower electricity generation from its major power stations with the Yallourn plant in Victoria running less as safety and efficiency improvements were made while Mt Piper had to manage disruptions to coal supply.

Managing Director Catherine Tanna said:

“There’s no question last year was difficult, one of the most trying we’ve had. Our results show that.

“But they don’t show the great work done by our people and their unshakeable dedication to the things that matter – safety, customers and decarbonising our power assets.

“EnergyAustralia had the fewest injuries in its history, we pared back our product range to just a few, easy-to-understand offers, we helped customers find better deals as they navigated significant regulatory change and we made our generation portfolio more efficient and cleaner.  

“Looking ahead, the energy system is in flux, but there are good signs. Pressure is easing on wholesale electricity prices. The technology exists for a cleaner, reliable and affordable power system. Generators, retailers, regulators, and governments are working together to find the right balance of low-cost, low-carbon emissions technologies and grid reliability.

“EnergyAustralia has a responsibility to keep our lights on and produce the energy we all need. At the same time, decarbonising how we generate power is a priority. We’re excited by the work we’re doing on our pumped hydro, energy recovery and new gas-fired projects. These are examples of the generation assets that can underpin the energy system as big coal plants retire.

“We’re looking forward to 2020. There’s a lot to do, but I’m convinced we’re on the way to an energy system that works.”