EXHIBIT 12
TXU AUSTRALIA GROUP
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31,
------------------- -----------------------------------------------------
2000 1999 1999 1998 1997 1996 1995
(unaudited)(unaudited)
--------- --------- --------- --------- --------- --------- ---------
Millions of Australian Dollars, Except Ratios
<S> <C> <C> <C> <C> <C> <C> <C>
EARNINGS:
Net income/(loss) from continuing operations $ 18.8 $ (12.6) $ (5.9) $ 46.2 $ 26.1 $ 9.2 $ 76.7
Add: Income tax expense/(benefit) 7.6 1.2 (19.8) 35.6 31.0 16.5 12.7
Loss on equity investments 0.8 0.5 0.8 0.1 - - -
Fixed charges (see details below) 123.5 92.1 209.3 94.9 98.9 112.7 45.5
Amortization of capitalized interest 0.1 0.1 0.2 0.1 - - -
Less: Interest capitalized - (0.5) (1.0) (1.0) (0.9) - -
--------- --------- --------- --------- --------- --------- ---------
Total earnings $ 150.8 $ 80.8 $ 183.6 $ 175.9 $ 155.1 $ 138.4 $ 134.9
========= ========= ========= ========= ========= ========= =========
FIXED CHARGES:
Interest expense $ 122.5 $ 90.7 $ 206.2 $ 93.2 $ 97.5 $ 111.9 $ 44.5
Capitalized interest - 0.5 1.0 1.0 0.9 - -
Rentals representative of interest factor 1.0 0.9 2.1 0.7 0.5 0.8 1.0
--------- --------- --------- --------- --------- --------- ---------
Total fixed charges 123.5 92.1 209.3 94.9 98.9 112.7 45.5
========= ========= ========= ========= ========= ========= =========
RATIO OF EARNINGS TO FIXED
CHARGES
1.2 0.9(1) 0.9(2) 1.9 1.6 1.2 3.0
========= ========= ========= ========= ========= ========= =========
TXU CORP. RATIO OF EARNINGS TO
FIXED CHARGES 1.7 1.5 1.9 1.8 2.1 2.2 0.7
========= ========= ========= ========= ========= ========= =========
</TABLE>
(1) The ratio of earnings to fixed charges of 0.9 for the six months ended June
30, 1999 was less than one to on coverage by $11.3 million
(2) The ratio of earnings to fixed charges of 0.9 for the year ended December
31, 1999 was less than one to one coverage by $25.7 million
