The following article published in SMH today probably explains...

The following article published in SMH today probably explains the drop today:
"Electricity generator and retailer ERM Power has advised that increased competitive pressures and likely higher hedging costs over the summer will rein in profits this financial year, contributing to a downbeat guidance for earnings.
The electricity generator and retailer expects fiscal 2016 underlying earnings in the range of $80 million to $94 million, down from the $94.4 million result in the year ended June 30, chief executive Jon Stretch told shareholders at the AGM on Thursday.
ERM shares fell as much as 3.6 per cent to $2.13 in early trading.
Mr Stretch pointed to a "moderation" in growth in ERM's key commercial and industrial market and downward pressures on margins.
"Our competitors have realised they cannot match our service and cost structure, so there has been an uptick in competitive pressure," he said in his address.
He also points to a bigger-than-anticipated decline in earnings at the Oakey power plant in Queensland as the plant operates on a fully merchant basis, rather than having output covered by contracts. ERM had signalled that earnings from Oakey would drop by $8 million-$10 million this year compared with the 2015 fiscal year, but Mr Stretch now says the drop will be "more like $12 million".
He said that for the new US business, financial year 2016 would be one of "investment in transformation". The business should break even this year.
ERM plans "to maintain, at a minimum, the current level of dividends," Mr Stretch said.
Chairman Tony Bellas describes business conditions for ERM as continuing "to pose policy, regulatory and competitive challenges."
"Electricity consumption continued to decline and, while ERM Power is taking a larger share of that shrinking market, we remain diligent in relation to competitor response," Mr Bellas said.
Greater certainty and consistency in national energy policy is essential to avoid increasing costs for businesses and households, he said"