Eraring Energy

Eraring Energy
Company typeGovernment-owned corporation
Industryelectricity generation
Founded2 August 2000 (2 August 2000)
Headquarters
Sydney
,
Australia
Key people
John Priest, Murray Bleach and Ian Murray (Directors)
Peter Jackson (managing director)
RevenueDecrease A$609m[1]
Decrease A$584m[1] (2011)
Decrease A$(664m)[1]
Total assetsDecrease A$1,178m[1]
Total equityDecrease A$999m[1]
OwnerTreasurer of New South Wales – 1 share
Minister for Finance and Services – 1 share
Number of employees
Increase 406[1]
ParentNew South Wales Government
Websitewww.eraring-energy.com.au

Eraring Energy was an electricity generation company in Australia that was owned by the Government of New South Wales, and had a portfolio of generating sites using thermal coal, wind, and hydroelectric power. It was sold to Origin Energy in 2013.[2][3]

Eraring Energy was established in 2000 under the State Owned Corporations Act, 1989 (NSW) and the Energy Services Corporation Act, 1995 (NSW).

Generation portfolio

Eraring Energy owned and operated the following power stations to generate electricity for sale under contract:

Name Fuel Type Location Maximum
Capacity
(MW) 		Commissioned
Bendeela Hydro Turbopump Kangaroo Valley 80 1977
Blayney Wind Wind turbines Blayney 10 October 2000
Burrinjuck Hydro Turbopump near Yass 28 1938, 1972, 2002
Crookwell Wind Wind turbines Crookwell 5 1998
Eraring Coal Steam turbines Lake Macquarie 2,780 1 1982–1984
Hume Hydro Turbopump near Albury 58 1957 & 2000
Kangaroo Valley Hydro Turbopump Kangaroo Valley 160 1977
Keepit Hydro Turbopump near Gunnedah 6 1960 & 1983
Warragamba Hydro Turbopump Warragamba Dam 50 2 1959
^1 – Progressively being upgraded to 4 x 720MW; commenced in 2011
^2 – Disconnected

Energy Reform Project

Subsequent to the NSW Government releasing its Energy Reform Transaction Strategy in September 2009, a Direction was issued to Eraring Energy on 14 December 2010 by the Special Minister of State, to the Board to enter into a GenTrader Transaction Implementation Deed.

On 27 February 2011, Eraring Energy entered into Generation Trading Agreements (GTA) with Origin Energy as part of the New South Wales Government's energy reform process with changes to the business as follows:

  • The output from Eraring Power Station and the Shoalhaven Scheme Power Stations are separately contracted with Origin Energy. These contracts are due to expire in 2032 (Eraring Power Station) and 2038 (Shoalhaven);
  • Eraring Energy is no longer responsible for the future procurement of coal;
  • Eraring Energy no longer receives market income for the GTA contracted stations; and
  • Eraring Energy is no longer responsible for future costs involved with carbon liabilities.

On 25 February 2011 a Direction was issued by the Special Minister of State to transfer Eraring Energy’s shares in Rocky Point Holdings (responsible for the development of the Cobbora coal mine) to the Cobbora Holding Company Pty Limited, a separate NSW statutory corporation.

Under the agreements, Origin Energy has the right to trade the output of Eraring Power Station and Shoalhaven Scheme Power Stations and receive market revenue from these assets. In return, Eraring Energy receives a combination of fixed and variable monthly payments. In the event certain plant availability targets are not met, availability liquidated damages may be payable by Eraring Energy to Origin Energy.

Eraring Energy continues to operate the renewable assets of Hume Power Station, Burrinjuck Power Station, Brown Mountain Power Station, Keepit Power Station, Crookwell Wind Farm, and Blayney Wind Farm.

Asbestos liabilities

Eraring Energy manages the liability for asbestos related illnesses arising from exposure to asbestos at former Electricity Commission of New South Wales and Pacific Power sites. These sites include de-commissioned power stations such as Bunnerong, Ultimo, White Bay, Pyrmont and Wangi Wangi. These liabilities are managed by Eraring Energy on behalf of the NSW Government.[citation needed]

References

  1. ^ a b c d e f "Annual Report 2011" (PDF). Eraring Energy. 2011. Archived from the original (PDF) on 21 March 2012. Retrieved 9 December 2011.
  2. ^ "Origin buys NSW power station for $660m". The Australian. 1 July 2013. Retrieved 23 September 2019.
  3. ^ Baird, Mike (1 July 2013). "GOVERNMENT SELLS ERARING ENERGY TO ORIGIN AND TERMINATES COBBORA CONTRACT - NSW Taxpayers Dodge Labor's Fiscal Bullet" (PDF) (Press release). Treasurer of New South Wales.