This report summarises the audit results of Queensland’s six energy entities. These entities generate (CleanCo, CS Energy, and Stanwell), transmit (Powerlink), and distribute (Energy Queensland) most of Queensland’s electricity; and Ergon Energy Queensland is the electricity retailer for most customers in regional Queensland.
The financial statements of all entities in the energy sector are reliable and comply with relevant laws and standards. They were prepared in a timely manner and were of good quality.
The Queensland Audit Office continues to identify weaknesses in the entities’ information systems.
Profits from the transmission and distribution entities declined by $223 million, due largely to a reduction in the revenue they are permitted by the Australian Energy Regulator to earn from their core business (transporting electricity to customers).
As the sector diversifies to renewable sources, the energy entities need to ensure they remain profitable and deliver reliable electricity supply to Queenslanders. The generators continue to invest in renewable energy primarily through power purchase agreements with privately owned solar and wind farms.
Integrating renewables and new technology into the electricity network is also a challenge, as the sources can be in remote areas and can provide less predictable supply. With reduced profits, transmission and distribution entities need to manage their costs while maintaining network strength and stability.
State of Queensland (Queensland Audit Office) 2021