A PYMNTS Company

Australia: Origin Energy lowers profit forecast due to antitrust authority’s policies

By  |  November 9, 2012
Australia: Origin Energy lowers profit forecast due to antitrust authority’s policies

Origin Energy has revised its guidance of how much the entity expects to earn in the energy market this year, now suggesting earnings may decline by between five and 10 percent. Its earnings forecast comes in response to the Queensland Competition Authority’s decision earlier in the year to freeze electricity prices; Origin had originally expected the act to cause $60 million, and its competitor AGL estimated the act would cut earnings by $45 million. Origin explained its reasoning, pointing out that the Clean Energy Regulator revised cost estimates of Small-scale Technology Certificates. The Regulator now says businesses may recover up to 19 percent from returned STCs, but Origin and its competitors may not be able to recover the 19 percent because the Queensland and South Australian competition regulators did not provide a mechanism to do so in its recent polity revisions. The 19 percent that Origin is allowed to recover is valued to have been $40 million.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Full Content: Business Spectator

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.