Leslie Massey
Australia's energy market is vast, with over 40 electricity retailers. However, not all of these energy companies are Australian-owned. In June 2021, there were 22 Australian-owned energy retailers across the nation. Origin Energy, a leading energy provider to homes and businesses in Australia, was subject to a takeover bid by Brookfield Asset Management and EIG Global Energy Partners in November 2022, raising questions about its Australian ownership. The deal was terminated in December 2023 after failing to meet shareholder approval, with the company's largest investor, AustralianSuper, leading the opposition.
| Characteristics | Values |
|---|---|
| Number of customers | 4.217 million |
| Electricity capacity | 6,010 MW |
| Shareholders | Led by AustralianSuper |
| Ownership | Partly owned by Brookfield and EIG's MidOcean Energy |
| Operations | Offices, generation sites, exploration acreages, and production facilities across Australia |
| Philanthropy | Origin Energy Foundation |
| Market share | 30% of the Australian east coast domestic gas market |
| Power generation capacity | 13% of the National Electricity Market |
| Fines and penalties | Fined $126,000 in December 2020, $5 million in October 2021, and $17 million in June 2022 for various infractions |
| Emission goals | Net-zero direct and indirect emissions by 2050 |
Explore related products
What You'll Learn
Origin Energy is ASX-listed, with shareholders worldwide
Origin Energy is a leading provider of energy to homes and businesses across Australia. It is an ASX-listed company with shareholders worldwide.
Origin Energy has a rich history in energy exploration, production, power generation, and retailing. The company has offices, generation sites, exploration acreages, and production facilities across Australia. As of January 2017, Origin Energy had approximately 4.217 million customers, servicing large energy customers, as well as the residential and small business markets.
In addition to its presence in Australia, Origin Energy also has operations in New Zealand. In January 2017, a whistleblower and former compliance manager at Origin Energy, Sally McDow, alleged that the company had ignored various wellfield integrity issues. These issues included failing to maintain hundreds of wells across Australia and New Zealand, neglecting to seal wells after their active lives, and failing to report incidents to internal regulators or appropriate external regulators.
Origin Energy has been involved in several acquisitions and divestments. In December 2010, the company announced its purchase of the retail divisions of Country Energy and Integral Energy from the Government of New South Wales for a total of AU$3.25 billion. In 2017, Origin Energy sold its subsidiary Lattice Energy and its conventional upstream oil and gas business to Beach Energy for AU$1,585 million.
Regarding ownership, Origin Energy is a publicly-traded company with shareholders worldwide. While it is ASX-listed, the full extent of its ownership structure is not publicly available. However, it is known that in 2023, a takeover bid by Brookfield Asset Management and EIG Global Energy Partners consortium for AU$18 billion was terminated due to opposition from shareholders, led by AustralianSuper, the company's largest investor. This indicates that Australian entities do hold a significant stake in the company, but it is not confirmed if it is a majority holding.
Methadone Treatment Access in Australia: Is It Free?
You may want to see also
Explore related products
The company has a rich Australian history
Origin Energy has a long history in Australia. The company was founded in 2000 following the demerger of the energy business from the building and construction arms of Boral Limited. It is one of the largest energy companies in Australia, with approximately 4.2 million customers and the capacity to generate 6,010 MW of electricity, representing about 13% of the power generation capacity in the National Electricity Market.
Origin Energy has a diverse portfolio of energy assets in Australia, including the Bowen and Surat Basins in Queensland and the Browse Basin in Western Australia. The company has also invested in renewable energy projects and has committed to net-zero direct and indirect emissions by 2050. Origin Energy is a Tier 1 energy retailer in Australia, which means it has government protections in place for its customers.
The company has a strong presence in the Australian community and is involved in various initiatives. They support young Australians through the Origin Energy Foundation and are supporters of Netball Australia, the Sydney Swans, and Melbourne City FC. They also work with local suppliers and embrace diversity and inclusion in their workforce, with a focus on Indigenous career opportunities.
Origin Energy has faced some controversies, including allegations of ignoring wellfield integrity problems and providing misleading information about price increases. The company has also been fined for breaching its obligations to customers experiencing payment difficulties and charging prohibited exit fees. Despite these issues, Origin Energy remains a significant player in Australia's energy market and continues to evolve and adapt to the changing energy landscape.
Are Dogo Argentinos Legal in Australia?
You may want to see also
Explore related products
Origin Energy is Australia's largest electricity and natural gas provider
Origin Energy is one of Australia's largest electricity and natural gas providers. It has approximately 4.217 million customers, servicing both large energy customers and the residential and small business markets. Origin operates with a capacity to generate 6,010 MW of electricity, representing about 13% of the power generation capacity in the National Electricity Market.
Origin Energy has a rich heritage in energy exploration, production, power generation, and retailing. It has offices, generation sites, exploration acreages, and production facilities across Australia.
In 2017, Origin sold its subsidiary Lattice Energy and its conventional upstream oil and gas business to Beach Energy for $1,585 million. Australia Pacific LNG (APLNG) is a company owned by Origin Energy, US giant ConocoPhillips, and China's Sinopec. APLNG develops gas fields in the Surat and Bowen Basins and constructs a 530-kilometre gas transmission pipeline.
In December 2020, Origin was fined $126,000 after the Australian Competition and Consumer Commission issued an infringement for misleading information regarding price increases. In October 2021, the company was fined $5 million for charging 22,371 customers prohibited exit fees.
While Origin Energy is a significant player in Australia's energy market, it is not entirely Australian-owned. In March 2023, it was reported that Origin's energy market business was owned by Brookfield and its partners, while EIG's MidOcean Energy owned its integrated gas business. However, this acquisition was terminated in December 2023 after opposition from Origin shareholders led by AustralianSuper, who held the largest stake in the company.
The Australian energy market includes over 40 electricity retailers, and it can be challenging to discern which companies are Australian-owned. Government-owned retailers in states like WA and regional QLD are Australian-owned, while privatized sections of the market may have less apparent ownership structures.
Bull Sharks in Australia: Where Are They Found?
You may want to see also
Explore related products
The company was fined for misleading customers about price increases
Origin Energy was fined $126,000 in December 2020 for misleading customers about price increases. The Australian Competition and Consumer Commission (ACCC) issued an infringement notice, alleging that Origin made false or misleading representations in a letter sent to residential electricity customers in Victoria. In the letter, Origin stated that electricity prices were changing due to the Victorian Essential Services Commission's increase to the Victorian Default Offer. However, the ACCC clarified that the price increase was solely Origin's decision and unrelated to the Default Offer.
The Victorian Default Offer is a price set by the Essential Services Commission for consumers on standing offers, distinct from those on market offers. While the Default Offer did increase in 2020 due to various factors, this change did not impact the prices charged by Origin to households on market offers. The company had the discretion to adjust prices for these customers but allegedly misrepresented the reason for the increase.
This incident was not an isolated case of Origin Energy providing misleading information to customers. In 2015, Origin Energy Limited and two of its subsidiaries were ordered to pay penalties totalling $325,000 for contravening the Australian Consumer Law (ACL). The Federal Court of Australia found that they made false or misleading representations regarding the level of discount that residential consumers in South Australia would receive under a DailySaver energy plan.
Origin Energy has faced additional penalties for other instances of misleading customers. In October 2021, the company was fined $5 million for charging prohibited exit fees to thousands of customers, despite being aware of changes in the law banning such fees. Furthermore, in 2022, Origin was fined $17 million for breaching its obligations to customers experiencing hardship and payment difficulties.
While Origin Energy has a rich Australian history, it is important to note that, as an ASX-listed company, its ownership is diverse, with shareholders from across the globe. The company has also been involved in international ventures, such as the Australia Pacific LNG project, which is owned in partnership with US giant ConocoPhillips and China's Sinopec.
Gluten-Free Risotto: An Australian Guide
You may want to see also
Explore related products
Origin Energy has committed to net-zero emissions by 2050
Origin Energy, a company with a rich Australian history, has committed to net-zero emissions by 2050. This commitment is in line with the Paris Agreement's goal of limiting global warming to 1.5 degrees Celsius. To achieve this, Origin Energy aims to reduce scope 1 equity emissions, a type of direct carbon emission, by 8 million tonnes between 2021 and 2023, with 2017 as a baseline. The company has linked a portion of its executives' short-term incentives to these emissions targets, with between 10% and 15% at stake.
Origin Energy's climate plan includes new emissions reduction targets and a medium-term equity emissions intensity target. The company supports a just energy transition and is taking steps to mitigate adverse impacts on stakeholders while promoting the opportunities that the transition will bring. Origin Energy became the first energy company in the world to commit to the first seven commitments of the We Mean Business Coalition, a global nonprofit coalition that provides a framework to accelerate business climate action for a net-zero, 1.5-degree-Celsius-aligned world.
Origin Energy's commitment to net-zero emissions by 2050 is in response to increasing pressure from investors and campaigners concerned about the company's role in promoting coal, oil, and gas, which are the leading causes of man-made greenhouse gas emissions. The company's financial statements incorporate the material impacts of the global drive towards net-zero GHG emissions by 2050 and include sensitivity analyses aligned with achieving this goal.
Origin Energy's goal of net-zero emissions by 2050 extends to both direct and indirect emissions. This target is in line with the IEA's Net Zero Emissions by 2050 Scenario, which assesses the compatibility of companies' investments and future investment plans with a Paris-aligned pathway. Origin Energy's commitment demonstrates its recognition of the importance of mitigating climate change and its willingness to take action to reduce its carbon footprint.
Transfer Money Safely: Australia to Afghanistan
You may want to see also
Frequently asked questions
No, Origin Energy is not 100% Australian owned. In 2023, a takeover offer by Brookfield Asset Management and EIG Global Energy Partners was approved by the Australian Competition and Consumer Commission. However, the acquisition was terminated after Origin shareholders opposed the deal.
There are over 20 energy retailers that are 100% Australian owned. Some examples include Sumo, Amber, Enova Energy, GloBird Energy, and Locality Planning Energy (LPE).
In some regions of Australia, such as WA and regional QLD, the power grid is government-owned, so the power retailers are Australian owned by default. In privatized areas, it may not be readily apparent. You can refer to guides and lists of Australian-owned energy companies to identify which ones are locally owned.
The impact of foreign ownership in the Australian energy market is complex. On the one hand, foreign investment can bring capital and expertise to develop energy infrastructure and resources. On the other hand, there may be concerns about profit repatriation, local control over energy assets, and alignment with Australia's energy policies and goals.
