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Category: Electricity Energy and Utilities

WA energy provider Synergy suffers 40 per cent profit slump

Thursday, 22 Sep 2016 14:54:13

WA energy utility Synergy has reported a 40 per cent drop in after tax profit in the past financial year.

Western Australia's main energy provider Synergy has suffered a huge drop in net profit after tax of more than 40 per cent in a year, as the uptake of solar and lower government subsidies cut into revenue.

Synergy chairman Lyndon Rowe, who received a salary of $603,000, said it had been another 12 months of Synergy "overcoming the blistering challenges to the electricity sector".

The agency's 2015-16 annual report was tabled in Parliament today and Mr Rowe said the most significant risk to "future sustainability" of WA's energy market was a failure to address the current tariff structure.

He again called for an increase in electricity prices to match the cost of production and a "fairer" pricing model.

Synergy reported a net profit after tax of $32.3 million in 2015-16, a 43.3 per cent drop on the previous financial year's result.

Chief executive Officer Jason Waters said "difficult market conditions" saw Synergy's total revenue fall by $119.4 million from 2014-15.

He said that was partly due to a $78.3 million reduction in the operating subsidy paid by the State Government, as it strives to make energy agencies more efficient.

There was also $41.1 million plunge in sales revenue.

That was partly offset by a $63.5 million fall in operating expenses.

Mr Waters noted the challenges presented by customers' changing energy usage patterns and an oversupplied market, as Synergy seeks to rid itself of traditional forms of energy production and increase its renewable energy contribution.

AustraliaPlus


 

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