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Full-year highlights:
- Provided hardship support to households impacted by COVID-19 and created a program for small businesses through Rapid Business Assist.
- Progressed flexible generation and storage options, including a proposed 250 MW Kidston pumped hydro facility in Queensland, and plans to expand the existing Tallawarra gas-fired power station in New South Wales.
- Invested $200 million in major maintenance reliability programs at power plants in Victoria and New South Wales that were safely completed in time for summer.
- Improved efficiency at Mt Piper in New South Wales by delivering an additional 30 MW of generation capacity, without having to burn more coal.
- Launched residential customer plan, Free Saturdays to the On by EnergyAustralia retail platform, which provides eligible New South Wales households 24-hours of free electricity every Saturday for a year.
- Reached 250,000 electricity customers signed up to Go Neutral, making it the largest carbon offsetting product of any energy retailer or generator in Australia, and one of the largest Climate Active certified offset products in the country.
- Completed the acquisition of solar and LED lighting company, Echo Group.
EnergyAustralia, one of the country’s leading energy retailers, today announced it contributed operating earnings before interest, tax and fair value adjustments of A$373 million to owner CLP Group in the 12 months ended 31 December 2020, down from A$428 million a year ago.
The results reflected the combined effects of COVID-19, retail price regulation introduced in July 2019, ongoing competition in the retail sector and falling wholesale prices. However, these impacts and the pandemic did not stop the company from pursuing major reliability and efficiency maintenance programs, as well as the project pipeline to transition its portfolio in support of the modern energy system.
Managing Director Catherine Tanna said:
“The challenges that households, businesses and communities experienced last year cannot be understated.
“I am extremely proud of the EnergyAustralia workforce for how they responded. What we accomplished makes me optimistic for the future as we continue to serve our customers and progress plans to be carbon neutral by 2050, ensuring that no customer is left behind in this ambition.”
EnergyAustralia responded to the devastating bushfires and the global pandemic by doubling hardship resources for those doing it tough. The company also developed a new program tailored for small business customers called Rapid Business Assist.
The company was also pleased to deliver a welcome reduction in average electricity rates for the majority of EnergyAustralia residential and business customers across Australia.
Despite COVID-19, EnergyAustralia delivered a program of work, representing a total investment of more than $200 million, to enhance safety and ensure the reliable operation of its power plants during the demands of summer.
The business also added 30-megawatts at each of two plants through a new fast-start gas generator at Hallett in South Australia and a turbine upgrade at Mt Piper in New South Wales.
Outlook
The company will continue to face pressure on margins from the combined impact of intense competition in energy retail markets, higher gas costs following the expiry of legacy gas contracts, and low prices in the wholesale electricity market.
Ms Tanna said EnergyAustralia continues to focus on service excellence and hardship support, particularly for those who are still struggling due to the coronavirus pandemic. The company continues to appeal to anyone struggling to pay their energy bills to make contact as they will be provided a stay-connected guarantee.
She added that despite the challenging economic outlook, EnergyAustralia will continue to maintain reliable supply and seek out further maintenance opportunities at power plants later in 2021 and the company will also progress investments through fast-response generation projects, storage and demand response.