Sector profitability continues to decline
While the energy sector is still financially viable, its profits have declined significantly.
Queensland continues to have the lowest wholesale electricity prices in the National Electricity Market, and they have reduced further this year. This influences the price customers pay, but also contributes to the significant reduction in revenues and values of assets for the generators.
The profits of the transmission and distribution businesses continue to decline. This is largely driven by decisions of the Australian Energy Regulator to reduce the revenue they can earn from their core business activities. We expect to see this trend continue in the next financial year.