Origin Energy Not for Distribution or release in the United States of ...

IPART’s determination of regulated energy price caps has effectively set NSWtariffs to 30 June 2013 giving relative pricing certainty to mass marketcustomers on regulated tariffs in the near term• In December 2007 the Government committed to extend energy retail priceregulation until it is satisfied there is sufficient competition in the NSW market• The Independent Pricing and Regulatory Tribunal (IPART) has determined themaximum weighted average price cap that can be charged in NSW for mass marketelectricity and natural gas customers on regulated tariffs over the period 1 July2010 to 30 June 2013– The determination provides for annual reviews of energy costs– Prices are not regulated for customers who sign market contracts, howevermass market customers can elect to convert back to regulated tariffs, andmost market contracts are benchmarked to regulated standard contracts– Both Integral Energy and Country Energy have a high proportion of theircustomer base on regulated standard contracts• The NSW Electricity Tariff Equalisation Fund (ETEF), which reduces wholesalepurchase price risk for regulated load, is currently being phased out and will end on30 June 201113Origin expects that over time the east coast energy market willreach a long term sustainable margin that is consistent acrossstates and reflects the increasingly competitive nature of themarket