EnergyAustralia appoints Mark Collette as new CEO, replacing Catherine Tanna

Catherine Tanna will step down after seven years in the job with retail boss Mark Collette named as the new CEO.

Mark Collette will head up EnergyAustralia, replacing Catherine Tanna.

EnergyAustralia has appointed retail boss Mark Collette to take Catherine Tanna’s job as head of the Hong Kong-based company‘s Australian operations.

Ms Tanna, a former RBA board member, will step down on July 1 after seven years in the job over which time she has stabilised the company and established its future course with the recent deal with the Victorian government over the early closure of the Yallourn power station.

The orderly handover is in stark contrast to the mayhem at market leader AGL Energy with its chief Brett Redman leaving earlier this month and replaced by chair Graham Hunt.

“Succession planning began two years ago, and we’re thrilled that an internal candidate has been appointed following a comprehensive domestic and international recruitment process,” EnergyAustralia chairman Graham Bradley said.

“Mark is a highly experienced executive who has played a pivotal role in positioning EnergyAustralia to navigate the complexities of the energy transition. Under Mark’s leadership we will continue to pursue opportunities as we build a modern energy business that helps keep the lights on.”

Mr Collette joined EnergyAustralia in 2003 and has led the customer, energy, trading and corporate strategy and development teams. He is a director of the board of the Australian Energy Council, a former director of the Australian Financial Markets Association, member of the Reliability Panel and holds degrees in Aerospace Engineering, Business Administration and Economics.

“I thank the board for this opportunity and am committed to carry on the work to build a thriving business capable of delivering momentous projects, such as Australia’s first four-hour, 350 MW utility-scale battery by 2026,” said Mr Collette.

The Australian Energy Council noted Ms Tanna’s contribution to the industry.

“Cath has been a hugely influential figure in the Australian energy sector. She is one of the most highly respected business people in the country and her contributions to public policy debates will be greatly missed,” AEC chief executive Sarah McNamara said.

Among the new CEO’s immediate priorities will be sanctioning a final investment decision on its planned $400m Tallawarra gas plant in NSW amid heightened uncertainty over the threat of state and national government interventions in the energy sector.

Mr Bradley said in September it had already lost an opportunity to move the Tallawarra project along due to Canberra‘s interventionist approach in the electricity sector.

EnergyAustralia said it continues to assess the NSW government‘s controversial plan to build more power generation in addition to the Morrison government’s threat it may build its own gas plant in the Hunter Valley.

The power giant in March committed to run Yallourn until 2028 under a pact with the Victorian government, bringing forward its closure date by four years.

The Australian understands the state government has provided financial backing to ensure Yallourn stays in the system with EnergyAustralia’s parent CLP noting mechanisms were in place “to facilitate Yallourn to operate economically through to 30 June 2028 and to operate at certain required operational and performance” levels.

EnergyAustralia is among the nation’s big utilities being battered by a dramatic change in the market.

Average electricity spot prices have halved from a year ago to between $40 to $45 MwH range in most states as a flood of cheap renewables lowered daytime prices along with cheaper gas and coal and softer demand amid COVID-19.

Some investors have questioned whether the big fall in wholesale prices is sustainable given predictions baseload coal plants may need to further cut production to survive, tightening the market and leading to prices rising again.

Wholesale electricity prices fell in the first three months of 2021 to their lowest levels since 2012 with milder summer temperatures and record rooftop solar take-up plunging demand to a near record low.

NSW and Victoria achieved the biggest reductions in wholesale prices as an easing of volatility coupled with a 3 per cent drop in demand continued a trend for cheaper tariffs seen in the last few years, the Australian Energy Market Operator said.