Manawa Energy has announced the termination of its electricity supply and services agreement with a retailer for which it is a wholesale intermediary. The retailer is in default of payment terms.
This decision was made to provision for a potential bad debt on the contract, which is described as a unique arrangement for Manawa.
The company will now take immediate steps to mitigate the risk of further exposure and will work towards recovering the outstanding debt.
Manawa is also facing the impact of electricity market conditions, specifically the extended dry and calm sequence, leading to lower generation volumes from its hydroelectricity schemes and reduced electricity volumes from wind power purchase agreements.
As a result, Manawa has revised its rebitdaf guidance for the year ending March 31, 2025, to be in the range of $95 million to $115m, compared to the previous guidance of $130m to $150m.
Approximately half of the change in earnings guidance is attributed to the provision for potential bad debt.
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