Power, not profit

A FALL in gas, electricity and water consumption has helped tip the Territory’s energy wholesaler into the red over the 2020-21 financial year.

Power and Water Corporation made a $4.1m loss in the year to June 30, despite having previously predicted a $41m profit.

The company has, however, defended the results, saying it managed to reduce borrowings by making a $5m repayment and also copped the bill for $3m of Covid hardship relief for businesses.

Power and Water chief executive Djuna Pollard said the company was also predicting an improved performance in 2021-22 by selling gas to the east coast.

“We are proud to have continued to delivered essential services to all Territorians throughout the year across all key reliability measurements above normal expectations,” Ms Pollard said.

“Cost prudency is a key strategic focus area of the business and our statement of corporate intent budget this year (2021-22) shows our commitment to improving our financial performance.

“Power and Water has implemented a number of initiatives to improve financial performance this year, in particular actively pursuing opportunities for gas sales within the Northern Territory and east coast markets.”

Renewables and Energy Minister Eva Lawler said the company had provided relief for businesses during the Covid-19 pandemic.

“When Territorians needed support during the uncertainty of the Covid-19 pandemic the Territory government provided that and so did our services,” Ms Lawler said.

“Power and Water has provided relief of almost $3m to its electricity, water and sewerage customers under the Northern Territory government’s business hardship relief package.

“Power and Water has implemented a number of initiatives to improve financial performance, and investigation into additional revenue streams through the sale of firm gas in the Northern Territory and spot gas on the Australian east coast is continuing.”

Among drivers of the loss were Darwin’s two Covid lockdowns, cost pressures from pandemic-related delays, and inflation.

Ms Lawler also indicated accounting measures taken in 2019-20 had boosted Power and Water’s performance. This treatment was removed for the 2020-21 financial year, resulting in the loss.