Economic Analisis of Origin
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.
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.
References: Davis, K. (2010, August 12). How electricity price set in australia? Retrieved from Prices, Wages and Labour Market Section: http://www.rba.gov.au/foi/disclosure-log/pdf/101115.pdf Guthrie, A Kelly, R. (2012, August 23). The Australian. Retrieved from www.theaustralian.com.au: http://www.theaustralian.com.au/business/profit-loss/origin-warnes-of-earnings-slowdown-in-201212/story-fn91vch7-1226456382352 King, G Origin Energy. (2004, August). Presentation to International Investors. Retrieved from Strategy, Performance, and Growth: http://www.originenergy.com.au/files/International_investors_2004.pdf Origin Energy Stanley St Labs. (2010, March 9). Economy Watch Follow the Money. Retrieved from Australia Economy: http://www.economywatch.com/world_economy/australia/?page=full Tarading Economy