Economic Analisis of Origin

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  • Topic: Electricity market, Energy economics, Energy development
  • Pages : 14 (4123 words )
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  • Published : May 12, 2013
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CO 5125: Economics for Managers

2oth August, 2012

Economic Analysis of Origin Energy Australia Mitali Mallick Biswas.
James Cook University
Executive Summary This economic and market analysis will focus on Origin Energy Australia and its retail business in Australia’s electricity market. The objective of this report is based on the knowledge of economic models acquired through the course of lectures on the subject. It explains the nature of the business and the competitive market in which it operates and provides an overall discussion of the cost structure of the business. This report is divided into, two parts: Microeconomics and Macroeconomics Micro-Economics:

The part provides an details description of the business in which it operates like nature of the business, the customers, location, infrastructure of the service, and the market share of the business. This information helps to identifying the position of the company in energy market of Australia. The company has a oligopoly situation in the current market situation as energy sector price are highly regulated through a combination of state and federal regulation. This part is deals with the various costs of business and how it’s determined. Although Origin energy has divers business but this report will focus on electricity retail market part of business only. After deregulation of Australian energy market is competitive in retailing but still there are some barriers to enter this sector. Only few companies are in this business. There are three type of electricity retail cost i.e. retail operation cost, Network cost and wholesale electricity cost and other cost involve in the company. Macro-Economics:

This part is providing a bigger picture of electricity retail market in Australia. How the electricity price set by the political system and government regulations for Origin energy Australia. This will include recent development in energy market and inflation effect on key drivers of expected price increase business. It also analyse the future project of Origin in Australia and Newzeland. The above information will help to analysis the company’s strength, weakness, opportunity and threats in future. In addition it will focus on the main product of business are likely to be normal or inferior goods and hence whether demand is likely to rise or fall during recession and economies climate change and further opportunity of export and import of energy product in Australia.

Table of Contents

Executive Summary2
1.0 Introduction......................................................................................................................................4 2.0 Description of the business...............................................................................................................4 2.1 Type of Business...........................................................................................................................5 2.2 Customers....................................................................................................................................5 2.3 Location of the Business and Customers......................................................................................6 2.4 Main Competitors of the Business...............................................................................................7 2.5 Market share of the Company......................................................................................................8 2.6 Competitive...
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