Gas cartel screams with laughter at NSW

When I die, I want to come back as the gas cartel. It’s not just the infinite profits. It’s the comedy gold that makes it irresistible.

Origin Energy stands to increase gross earnings by about $650 million in 2025-26 if its huge Eraring coal power generator remains open, according to Morgan Stanley estimates, in findings that may play into the terms of a deal expected to be struck with the NSW government to extend its life.

The estimate, by Morgan Stanley energy analyst Rob Koh, came as NSW Treasurer Daniel Mookhey warned Origin against “gaming the system” in its negotiations with the state government on an extension of the 2880-megawatt generator past Origin’s targeted closure date of August 2025.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.