Origin Energy

Overview

Origin Energy Ltd

type	Public
traded as	asx: ORG S&P/ASX 200 component
industry	Energy
foundation	February 2000, but parts of the business date from the 20th century
location	Barangaroo Sydney, New South Wales, Australia
key people	Frank Calabria (CEO) (MD)
products	Electricity, natural gas, solar panels, LPG, hot water, heating and cooling, electric vehicle charging, broadband
revenue	A$12.097 billion (2021)‡R1R‡
net income	A$-2.289 billion (2021)‡R1R‡
owner	AustralianSuper (17%)
website	https://originenergy.com.au

Origin Energy Ltd is an ASX listed public company with headquarters in Sydney. It is a major integrated electricity generator, and electricity and natural gas retailer. It operates Eraring Power Station, Australia's largest coal-fired power station, in New South Wales, which it plans to close in 2027.[2][3] As of 2024, it plans to "minimise" its ownership of wind and solar power, to boost investor returns.[4] It owns 20% of Octopus Energy, a UK renewable energy retailer.[5]

History

Origin Energy was formed 18 February 2000, as a result of a spin-off from Boral

Controversies

Whistleblower allegations

In January 2017, The Guardian reported allegations of whistleblower Sally McDow, a former compliance manager at Origin. She claimed that the company had ignored various wellfield integrity problems, including failing to maintain hundreds of wells across Australia and New Zealand, failing to seal wells after their active lives and failing to report incidents internally or to the appropriate regulators. She also described a culture of bullying and harassment within the organisation. She said that she had advised the CEO at the time, and Grant King (then President of the Business Council of Australia) but that King did not want the incidents reported. He allegedly stated that the incidents could be used by opponents of the unconventional gas industry to delay or halt current or future projects. Origin denied the allegations.[28]

Beetaloo Basin fracking

Origin was approved by the Northern Territory government to start fracking in August 2019[29] and drilling commenced in October 2019.[30] Fracking began in September 2020 following a six-month COVID-19 induced stand down.[31] Origin has postponed production at their Kyalla well site to the second half of 2021 due to the COVID-19 pandemic.[32]

Concerns were expressed by local officials on the fracking operation, fearing that it could affect their ability to get groundwater and stating the local officials did not fully understand the contracts they were signing with petroleum companies. Accusations that Origin did not consult with traditional landowners before starting their planned exploration[33] were refuted by the Northern Land Council which stated it understood the text in the contracts and consulted with traditional Aboriginal landowners.[34] Origin stated that it conducted multiple checks when installing a well and that fracking stops if a check fails.[35]

Origin divested from projects in the Beetaloo Basin in the Northern Territory in 2022.[36]

Misleading information and prohibited fees

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 a letter sent out to Victorian customers in December 2019. Origin stated in the letter that electricity prices were changing because of the Victorian Essential Services Commission's increase to the Victorian Default Offer, an unrelated price set by the Essential Services Commission. However, the ACCC stated that the price increase was entirely Origin's choice and they chose to increase prices.[37]

In October 2021 Origin was fined $5 million for charging 22,371 customers prohibited exit fees totaling $489,774. Origin received complaints about the fees in 2018 but continued charging them until 2020. The Essential Services Commission stated "Origin Energy knew at all times about the changes in the law banning exit fees and they even reviewed 19 different contract templates but didn’t remove the exit fees". By October 2021 fewer than half the wrongly charged exit fees had been reimbursed.[38]

Pollution

In September 2022 Origin Energy pleaded guilty to releasing nearly 800,000 litres of polluted water from its coal seam gas operations in Queensland's Western Downs region, north-west of Brisbane.[39][40] According to the Department of Environment and Science, heavy rain caused water to overflow from coal seam gas tanks into a nearby waterway, including a landholder's dam.[39]

Origin Energy

History

Core business

Natural gas exploration and production

Australia Pacific LNG, Queensland, Australia

Energy retailing

Electricity generation

Controversies

Whistleblower allegations

Beetaloo Basin fracking

Misleading information and prohibited fees

Pollution

External links

References