Power prices: EnergyAustralia reaps benefits of Hazelwood closure
ELECTRICITY retailer EnergyAustralia has handed down a bumper profit as it reaps the spoils from the closure last year of the Hazelwood coal-fired power station in the Latrobe Valley.
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ELECTRICITY retailer EnergyAustralia has handed down a bumper profit report — and rivals AGL Energy and Origin Energy are poised to follow.
Profit at EnergyAustralia has almost tripled as it cashes in on wholesale electricity prices pushed higher by the closure of the Hazelwood coal fired power station in Victoria’s Latrobe Valley.
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Net profit hit $375 million for the six months June, up from $129 million in the same period last year, the electricity heavyweight reported today.
“Ever since the Hazelwood and Northern power stations were shut on short notice, families and small businesses around the country have had a hard time keeping the lights on and their energy costs under control,” EnergyAustralia managing director Catherine Tanna said.
“Energy policy has remained uncertain and prices have gone up.”
EnergyAustralia is owned by Hong Kong-listed China Light and Power.
The company owns the Yallourn brown-coal-fired generator. Hazelwood was shuttered last year by French owner Engie.
AGL and Origin are both generating record profits in their core electricity retailing businesses.
Ms Tanna said the wholesale electricity price would likely decline in the second half of the year.
She said a pipeline of investments by EnergyAustralia in renewables and storage options would help stabilise wholesale prices.
AGL’s full-year results are due on Thursday with Origin’s to follow next week.
Both companies have flagged record earnings in their retail electricity businesses.
AGL shares climbed 1 per cent, or 21c, to $22.04 today, while shares in Origin were up 0.9 per cent, or 9c, at $9.86.
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