30 November 2018
Origin to lower energy prices for concession customers
The 10 per cent discounts in NSW, ACT, Queensland and South Australia will see more than 230,000 concession card holders save an average of $169 off Origin’s already low standing offer rate.
In Victoria, Origin will continue the offer introduced last year, providing substantial discounts of 26 per cent to concession card holders and 17 per cent to customers on standing offers or non-discounted plans.
Customers in Origin’s hardship program, Power On, will continue to receive the tariff freeze that has been in place since mid-2017, saving them on average $695 through guaranteed discounts and lower prices.
Origin CEO Frank Calabria said, “We understand many customers have been doing it tough since the sudden exit of two large coal-fired power stations caused electricity prices to spike in 2017, so we are making sure our most vulnerable customers on low incomes get some price relief in 2019.”
The discounts announced today come on top of $80 million (pre-tax) worth of network charges and green scheme costs that Origin absorbed to hold prices flat for Origin electricity customers in NSW earlier this year.
“We were the first major retailer to freeze tariffs for hardship customers in mid-2017, protecting the most vulnerable customers from paying higher energy costs. We have also already provided deep discounts to concession customers in South Australia and Victoria.
“However, it’s time to look seriously at how more substantial reductions could be achieved for customers. This includes following the ACCC’s recommendations to look at actions right across the energy supply chain, and through urgent progress on coordinated climate and energy policy that can guide the transition to a low carbon future at least cost to the community,” Mr Calabria said.
These changes to pricing for concession customers will be absorbed within the existing Energy Markets underlying EBITDA guidance range of $1,500 to $1,600 million for FY2019.
Estimated annualised savings based on weighted average impact for residential customers across all network areas and tariffs.
Origin expects to recognise non-cash charges for FY2021 and issues guidance for FY2022
Origin Energy Limited (Origin) expects to recognise non-cash post-tax charges of $2,247 million in its FY2021 Statutory Income Statement to be released with its full-year results on 19 August 2021. Origin has also issued guidance for FY2022.