AGL profits triple as Australian’s struggle to pay energy bills

AGL’s profits TRIPLE in just a year to reach record levels as households struggle to pay their energy bills – as ministers meet to decide on the country’s electricity future

  • Profits triple to a record level for Australia’s largest energy company AGL
  • The news comes a day before ministers meet to discuss the future of electricity 
  • The company reported an underlying profit of $1.02 billion at the end of June 

AGL’s profits have tripled to record levels in just a year as Australian households struggle to pay their electricity bills.

As ministers meet to discuss the future of Australia’s electricity, the nation’s biggest power producer has jumped a third into a billion-dollar record.

The company reported an underlying profit of $1.02 billion at the end of June.   

AGL’s profits have tripled to record levels with the company reported an underlying profit of $1.02 billion at the end of June

But the soaring prices of electricity has come with political backlash on the firm as ministers ask the Australian company for household bills to be slashed. 

The record result for AGL Energy was revealed just a day before a key meeting of state energy ministers.  

It is set to consider a long-awaited policy designed to boost power supply and lower prices while cutting carbon emissions. 

This would end a decade of dispute between green energy proponents and those focused on costs and security of supply. 

The company said whole-sale price was higher due to the shutdown of two coal-fired power stations over the previous two years. Despite the profit AGL Energy slumped five per cent as the 2019 profit was weaker than expected

The company said whole-sale price was higher due to the shutdown of two coal-fired power stations over the previous two years. Despite the profit AGL Energy slumped five per cent as the 2019 profit was weaker than expected

AGL Chief Executive Andy Vesey said: ‘Policy certainty is key to encouraging further investment in generation supply, which will place downward pressure on electricity prices and ultimately benefit customers.’

Despite the record profit, AGL Energy slumped five per cent as the 2019 profit was weaker than expected. 

The company said whole-sale price was higher due to the shutdown of two coal-fired power stations over the previous two years.

While facing heat to cut household power bills, AGL has also been pressed by the government to keep its ageing Liddell coal-fired power station open beyond 2022 or sell it to ensure there is back-up for wind and solar power generation.

AGL has instead opted to replace Liddell’s capacity with a $1.36 billion combination of gas-fired plants, an upgrade of another coal-fired plant, renewable power, and possibly some energy storage including pumped hydro.    

 

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