Rooftop solar panels and falling electricity demand is radically changing retail electricity markets. In Electricity disrupted - part 1 and part 2 we detailed why the sector was changing and how participants would fare. We argued that generators, retailers and distributors all had cause to fret. The release of full year results from industry giants AGL and Origin confirm this to be the case.
Origin and AGL are battling the same problems and, as Table 1 and 2 suggest, they are doing a fine job of hiding the extent of the pain. Underlying earnings per share fell just 5% at AGL and 7% at Origin – hardly reason enough to panic.