(Reuters) - Origin Energy on Monday said it expects to take a A$44 million hit to annual pre-tax earnings from a draft proposal by the government to lower the cost of energy for consumers.
The Australian Energy Regulator's draft determination on its Default Market Offer proposes a cap on energy prices for consumers in New South Wales, South Australia and southeast Queensland.
The impact of the Default Market Offer would be dependent on the final determination due by the end of April and will become effective from July 1. If so, Origin's profit will be impacted from the 2020 financial year, the company said in a statement.
It also added that the Victorian market was subject to a separate price regulation, which would be set from July.
(Reporting by Syed Saif Hussain Naqvi in Bengaluru; Editing by Cynthia Osterman)
