Origin Vs AGL – What’s the Difference?
Origin vs agl are two of Australia’s largest energy retailers, supplying gas and electricity to millions of homes and businesses. They both offer a range of plans that vary in price, renewables, and other features. However, there are some significant differences between the two companies that should be taken into consideration before making a decision.
The shortfall between what AGL and Origin generate themselves and what they sell to customers is filled in a couple of ways. One is by buying’spot’ power in the National Electricity Market, which is an almost-national (but not Western Australian) market that trades electricity volumes in much the same way that the ASX trades shares. But that puts them at the mercy of volatile energy prices, which can rise 100-fold when demand surges. The other way is to sign agreements with independent generators to supply a fixed amount of power, which reduces volatility. But both strategies expose them to risk – and a company less reliant on the spot market has a massive competitive advantage.
“Decoding the Energy Market: AGL and Origin Compared – Features, Prices, and Services”
That’s why it was so surprising when Origin this week lowered its earnings guidance, citing higher wholesale power prices. Morgans’ Ian Vickerson thinks the issue is deeper than that, and is “wary” about buying Origin shares, despite their current discount.
Rising energy prices are putting pressure on small business, with Origin saying its rates in Victoria will increase by $590 this winter. It’s urging those struggling to contact the company’s hardship program for help.