EnergyAustralia sales suffer solar slump
The slide in demand resulted in a steep fall in earnings in Australia, down 42.1 per cent to $HK1.68 billion ($210 million) in 2012. As a result, it plans to refrain from new investment in Australia.
"During 2012 we witnessed a decline of electricity usage across our customer base," the company's Hong Kong parent, China Light and Power, said.
"In our predominantly Victorian customer base we saw a decline of around 10 per cent in average mass market electricity consumption from 6.5 megawatt hours in 2011 to 5.8 MWhs in 2012."
Higher retail electricity prices, along with energy efficiency, the weather and greater penetration of residential solar photovoltaic were all blamed for the slump in demand.
The profit slide "was caused by a combination of factors, including reduced customer demand, suppressed wholesale electricity prices, higher operating costs and higher fair value loss on energy contracts," CLP said.
During 2012, EnergyAustralia shelved plans to raise funds on Australia's financial markets via a sharemarket listing because of weak power demand. Reduced demand also forced it to idle one of the four generators at its Yallourn power station for part of last year.
Yallourn can supply about a quarter of Victoria's demand for electricity.
Flooding at the power station also restricted output last winter, with the financial cost of the flooding put at $144 million.
Stronger summer demand has prompted the restart of the idled generator this year.
Frequently Asked Questions about this Article…
EnergyAustralia (formerly TRUenergy) reported about a 10% slide in power sales. The company and its Hong Kong parent, CLP (China Light and Power), blamed higher retail electricity prices, increased energy efficiency, weather, and greater penetration of residential solar photovoltaic systems for lower household electricity use.
EnergyAustralia's earnings in Australia fell 42.1% in 2012 to HK$1.68 billion (about US$210 million), according to its parent CLP.
CLP said its predominantly Victorian customer base saw average mass market electricity consumption fall by around 10%, from 6.5 megawatt hours (MWh) in 2011 to 5.8 MWh in 2012.
Yes. EnergyAustralia shelved plans for a sharemarket listing to raise funds in Australia because of weak power demand, and it planned to refrain from new investment in Australia. Operationally, reduced demand forced it to idle one of the four generators at its Yallourn power station for part of the year.
CLP said the profit slide was caused by a combination of reduced customer demand, suppressed wholesale electricity prices, higher operating costs, and a higher fair value loss on energy contracts.
Yallourn, which can supply about a quarter of Victoria's electricity demand, had one generator idled for part of the year due to reduced demand. Flooding at the station also restricted output last winter, and CLP put the financial cost of the flooding at $144 million.
Yes. Stronger summer demand prompted the restart of the previously idled Yallourn generator during the following year, according to the article.
The article notes that greater penetration of residential solar photovoltaic (PV) systems was one of the factors blamed for the slump in demand, as more homeowners generating their own power reduces retail electricity consumption for traditional suppliers such as EnergyAustralia.
Call 1300 880 160
Start a chat
Schedule a call
