EnergyAustralia writes down power assets

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EnergyAustralia, the local unit of CLP Holdings run by Cath Tanna, has written down the value of its power stations because of slower-than-expected removal of overcapacity from the market.

Hong Kong-based CLP said restructure and cost-cutting at its Australian business had helped the group to a record 2015 profit but that uncertainty remained in the wholesale power market.

“While the recent decline in the value of the Australian dollar has helped the competitiveness of local manufacturers, there remains concern that further large-scale industrial closures or a further economic slowdown in Australia will again impact demand for electricity,” CLP chief executive Richard Lancaster said.