Aurora Energy confident of improved financial outlook following first annual loss

Aurora Energy recorded its first annual loss in the 2009/2010 year but is confident of an improved outlook for future years.

Aurora’s annual report, tabled in Tasmanian State Parliament by Minister for Energy and Resources, The Hon Bryan Green MP, shows the company returned a loss before tax of $20 million, the first loss in its 12-year history.

Describing the result as disappointing, Aurora chairman, John Hasker AM said the 2009/2010 year had been characterised by challenges across many fronts, including generation and retail competition and reliability issues on the back of storm activity, at a time when customers were feeling the impact of rising electricity prices.

Mr Hasker said the financial result reflected the challenging market and regulatory environment that Aurora faced in 2009/10, as the company was unable to fully recover its input costs.

The AER made a final decision on Aurora Energy’s demand management incentive scheme (DMIS) in October. The DMIS consists of a demand management innovation allowance (DMIA), which is provided to Aurora Energy on an annual basis throughout the regulatory period. The AER will consider the application of the DMIA in the upcoming regulatory control period, to be published in November 2010.