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2008-09 Annual Report
Verve Energy ended the year in a better than forecast financial position. Our financial performance, while still unsatisfactory, outperformed budget with a net loss after tax of $171 million compared with a budgeted net loss of $183 million.
Total electricity revenue was $87 million higher than budget, largely as a result of higher electricity sales when other generators’ newly-built power stations were unavailable.
Significantly improved plant availability was also a positive aspect of the past year’s operations; and resulted in much lower capacity payment refunds, as well as more efficient fuel usage.
The State Government’s decision to increase tariffs in April 2009 will result in higher vesting revenue for Verve Energy. However, the benefits of the decision were not realised for the 2008/09 financial year.
While the first half of 2008/09 was affected by high fuel costs as Verve Energy managed the gas supply curtailments during the Varanus gas crisis, performance in the second half of the year was pleasing with an average FOF of about 2% and good fuel availability.
Managing Director Shirley In't Veld said the gas crisis last year highlighted the extent to which Verve Energy was relied upon to ensure electricity supply security.
"We continued to meet demand during the six-month gas crisis by optimising our fuel use and bringing two of the retired Muja units back online," Ms In't Veld said.
"Our financial performance will continue to improve as tariffs further increase and Community Service Obligation payments approved by the State Government take effect."