EnergyAustralia has kicked-off a multi-year transformation to streamline operations after it posted an 86 per cent year-over-year decline in operating earnings for the full year ended December 31, 2025.
Australia’s third-largest electricity and gas supplier said intense retail competition and cost-of-living pressures continued to compress margins in its customer business.
EnergyAustralia parent company CLP Group reported that the Australian business’ operating earnings before fair value movements dropped 85.6 per cent to HK$85 million (AU$15 million) from a year earlier due to reduced contributions from the customer business in a competitive retail energy market,
Improved earnings from wholesale electricity operations partially mitigated the decline.
EnergyAustralia’s customer accounts dropped 83,000 to 2.3 million while customer churn increased in line with market trends.
EnergyAustralia is working to modernise its technology infrastructure and streamline operations, targeting sustainable efficiency improvements and long-term growth.
EnergyAustralia Managing Director Mark Collette said: “We will continue to deliver targeted programs and operational improvements that strengthen the support for customers experiencing hardship as we focus on managing the business efficiently in a challenging market.”
The company will focus on its energy investment pipeline, which will continue to offset retail headwinds.
Construction commenced on its Wooreen energy storage system in Victoria. The 350-megawatt facility is capable of powering 230,000 homes for four hours during peak demand.
The project is backed by A$667 million in syndicated loan financing and a 50:50 partnership with Banpu Energy Australia. The project is on track to commence commercial operations in 2027.
EnergyAustralia formed a joint venture with EDF power solutions Australia to develop the Lake Lyell pumped hydro energy storage in New South Wales.
The company submitted an environmental impact assessment in February, with final investment decisions expected during 2026.
Other key projects scheduled for 2026 include the Kidston pumped hydro project in Queensland; the Orana BESS project (in New South Wales; and Hallett BESS construction in South Australia.
EnergyAustralia Managing Director Mark Collette said the results reflected a business deliberately investing through the transition, with the benefits of that investment increasingly visible in the company’s portfolio.
“We’re investing at scale and at the right moment in the transition cycle.
“The projects we’re delivering provide firming capacity the grid needs and position EnergyAustralia to compete strongly in the market that emerges on the other side of the transition,” Collete said.