Origin to power up

ORIGIN Energy is standing by its full-year earnings forecast as it lifts generation from its biggest power plant to take advantage of higher prices.

Shares in the energy producer and retailer rallied to their highest level in two years yesterday after it flagged plans to capitalise on price hikes.

Origin has maintained its forecast for full-year underlying earnings — a tally that excludes one-off costs — in the range of $1.7 billion to $1.8 billion.

It comes even after the group, along with major rivals AGL Energy and EnergyAustralia, agreed under pressure from the state government at the weekend to provide rebates to Victorian customers on default deals or expired offers.

Origin Energy shares closed 2.4 per cent up yesterday at $8.80.