- In the first six-months of 2022 — which covered unprecedented instability and uncertainty in energy markets globally — EnergyAustralia generated an Underlying EBITDAF of $26 million, compared to $363 million for the same period in the previous year.
- Continued progress in energy transition projects to advance Australia’s clean energy future: contracted with Darlington Point and Riverina batteries in NSW for a combined 90MW, scheduled for completion in 2024; construction in progress at the 300 MW net zero, gas and hydrogen powered Tallawarra B and at the Kidston pumped hydro storage project in Queensland (where EnergyAustralia has contracted storage services).
- Growth in retail customer accounts up 0.4% to 2.45 million retail customer accounts, a small increase YoY, with the churn rate now 3.7 percentage points lower than the rest of the market, compared to 1.6 percentage points lower in H1 2021.
- Supported around 23,000 customers experiencing financial difficulties through our EnergyAssist program.
- Negative impact from accounting revaluations of sold energy (fair value movements) were $2,031 million before tax for the first six months of 2022.
- Underlying post-tax earnings, inclusive of fair value movements fell in the first half of 2022, to a loss of $1,552 million.
EnergyAustralia, one of the country's leading energy retailers, today reported in the six-month period to 30 June 2022, earnings before interest, tax, depreciation and amortisation, and fair value adjustments, an Underlying EBITDAF of $26 million, compared to $363 million last year.
Against the backdrop of the global energy crisis, unexpectedly lower generation output coupled with high spot price purchases to cover retail customers, had a significant bearing on the company’s financial performance.
The negative impact from accounting revaluations of sold energy (fair value movements) was $2,031 million before tax for the first six months of 2022.
EnergyAustralia Chief Financial Officer Alastair McKeown said:
“Amid this energy crunch, we have continued to provide power into the system to support the millions of households and businesses who rely on us.
“High wholesale prices are challenging. We know household and businesses are feeling it. Our priorities are to maintain supply into the system, support customers experiencing financial difficulty, while increasing investment in energy transition projects to improve our future.
“During the first half of the year, the significant increases in the cost of energy were largely driven by adverse weather and geological issues which slowed domestic coal supply, along with untimely generator outages. Abroad, sanctions against Russia and the war in Ukraine, drove higher prices for Australia’s coal and gas. The culmination of these conditions found us in unchartered territory.
“Our generation output at Mount Piper and Yallourn Power Stations was unexpectedly lower, due to planned and unforeseen maintenance outages.
“We also faced fuel constraints at Mount Piper, which arose from lower-than-expected coal deliveries from our primary supplier. This led to a shortfall in contracted generation and the requirement to settle positions not covered by our generation at high spot market prices.
“Despite these challenges, our team worked hard to make our generators available to provide good supply into the system and help soften the impact of Australia’s energy supply crunch. Our gas assets ran up to seven times the volume compared with the same period last year.
“We remain committed to supporting our customers during this challenging economic climate. We have various support initiatives available to households and businesses experiencing financial difficulty and strongly encourage customers to come forward if they are worried about their bills – help is available.
“These short-term challenges have not impeded our progress to help advance Australia’s clean energy future and deliver on our long-term strategy.
“This includes the introduction of Solar Home Bundle — a new product which puts a solar and battery system within reach, for $0 upfront over a 7-year contract.
“Critically, ahead of major coal retirements, we have progressed construction of Tallawarra B Power Station, the country’s first net-zero emission, hydrogen-ready, fast start, gas power plant.
“Progress was also made on the Kidston pumped hydro storage project in Queensland and two new battery storage projects in New South Wales developed with partner Edify Energy for a combined 90MW, scheduled for completion in 2024.
“Planning for the Wooreen Battery is underway and we will shortly commence geotechnical analysis as part of our planning for a pumped hydro project at Lake Lyell, near our Mount Piper power station site.
EnergyAustralia’s EnergyAssist program means the power won’t be disconnected and debt collection activities won’t be initiated. Residential customers on the program also have access to tailored payment plans, energy audits, information on grant programs and advice on energy usage.
Through Rapid Business Assist, specialist advisors can discuss ways for EnergyAustralia’s small and medium-sized business customers to lower energy consumption, the government energy relief subsidies available, and options for tailored payment schedule.
- Eligible South Australians on low or fixed incomes can apply for help with the cost of energy bills for their principal place of residence. If you receive the energy concession, you could also be eligible for the SA Concessions Energy Discount Offer.
- The Victorian Government is giving a once-off $250 payment for all Victorian households that use the Victorian Energy Compare website, found at https://compare.energy.vic.gov.au/psb-faq
- Queenslanders will receive a $175 Cost of Living Rebate on their next power bill. Electricity providers will automatically apply the credit, so Queenslanders don’t have to apply.
- NSW residents are eligible for Energy Accounts Payment Assistance (EAPA) $50 vouchers. See Apply for Energy Accounts Payment Assistance (EAPA) vouchers for more information.
EnergyAustralia recent energy announcements:
- Investment in a 350MW, 4-hour battery at Wooreen;
- Construction of Australia’s first hydrogen/gas peaking power station, Tallawarra B, with over 300MW capacity; all greenhouse gas emissions to be fully offset over its operational life;
- Introduction of Solar Home Bundle in NSW where EnergyAustralia arranges the selection and installation of a solar and battery system at their home, with no upfront cost. After seven years, the customer owns the system outright;
- Our storage services agreement for the 250MW Kidston pumped storage hydro project in Queensland; and
- underpinning the Darlington Point and Riverina batteries for a combined 90MW in NSW.
- 23.5k customers utilising EnergyAssist programme, as at June 30, 2022
- 15 Ombudsman complaints per 10,000, a 19% reduction since 2020
- More than 330,000 customers currently offsetting their electricity use under Go Neutral, the largest certified carbon neutral program for electricity customers, an uplift of 32% since 2020.