Origin Energy (ASX:ORG) has declined to trigger its taxpayer-funded safety-net agreement for the Eraring coal power station for the 2027 fiscal year, ensuring no public subsidies will flow to the plant during that period.
The move follows the company's recent commitment to extend the life of Australia's largest generator—a 2.88-gigawatt facility—until April 2029, nearly two years past its original August 2027 retirement date.
The decision marks the second consecutive year Origin has bypassed the generator engagement project agreement, after also declining support for the 2026 fiscal year.
An Origin spokeswoman confirmed the government had been formally advised of the move, stating, "Not a single taxpayer dollar will be paid to Origin under the GEPA."
She emphasised that the company remains focused on maintaining a "secure and reliable power supply" for New South Wales as the state continues its complex transition away from coal-fired electricity.
At the time of reporting, Origin Energy's share price was $11.08.