Pricing: Pricing in New South Wales increased by 3.85% and 0.84% respectively for calendar years 2018 and 2020 in New South Wales but declined 0.8% for 2019. In Victoria, pricing declined by 2.4%, 4.05% and 0.66% respectively for 2018, 2019 and 2020. In Queensland there was an increase of 1.36% and 1.05% respectively for 2018 and 2019 and a decline of 0.31% for calendar year 2020. South Australian pricing fell by 1.12% for 2018, and remained flat for 2019 and 2020.
AGL Meeting with Federal Government: AGL was among the power firm bosses called to Canberra to meet with Prime Minister Malcolm Turnbull this month.
In a deal brokered by the Government, the energy retailers agreed to keep customers informed about what they pay for electricity.
The Managing Director of AGL, Andy Vesey, outlined his argument that new supply would bring down power prices. He urged the Government to rapidly put in place all 50 recommendations from a major report by Australia’s chief scientist Alan Finkel on the energy industry, including a clean energy target.
“Ultimately, until new investment winds up in new supply, we will continue to see this tension between regulatory and government desire to intervene and what the industry will do,” he told an analyst briefing.
He made it clear that he could not see wholesale prices coming down until there was sufficient new investment in supply.
Gas Import Terminal: AGL has announced Crib Point on the Mornington Peninsula as its preferred site for a gas import jetty and pipeline.
AGL has said the move would increase energy security and supply for customers in the south-eastern states of the country.
It is hoped the $250 million plan will be under construction by 2019 and operating by 2021.
The Victorian Government said it was confident the Crib Point would increase reliability within the sate’s energy supply and ultimately reduce prices.
AGL has advised however that it still has a significant amount of work to do before construction of the project can go ahead.
The project will enable access to the world market for gas, injecting some much-needed competition into the Australian market and will help ease the tight gas supply.
It would also have a flown on benefit to gas fired electricity generators and could have some impact on pricing.