AGL Energy Limited

 

AGL Energy Limited
Type	Public (ASX: AGK)
Founded	2006
Headquarters	St Leonards, Australia
Key people	Paul Anthony (CEO)
Industry	Energy
Products	Energy
Website	agl.com.au

AGL Energy (ASX: AGK) is the largest Australian gas and electricity retailer, with over six million customers. It has large investments in the supply of gas and electricity, and has recently invested in sustainable energy businesses such as wind farms and a hydroelectric power station in Victoria’s High Country.^[1] Listed on the Australian Securities Exchange (ASX code: AGK), AGL is an S&P/ASX 50 company with a market capitalisation of about A$7billion. The company has been operating in Australia for 170 years and was one of its first listed companies. It maintains a BBB investment grade credit rating from Standard & Poor’s.

History

The Australian Gas Light Company (AGL) was formed in Sydney in 1837. It supplied gas for the first public lighting of a street lamp in Sydney in 1841 and was the second company to list on the Australian Stock Exchange. On 6 October 2006, AGL and Alinta Limited shareholders approved the merger of AGL's infrastructure assets with Alinta and the subsequent separation of AGL Energy. This was subsequently approved by the Federal Court of Australia on 9 October 2006, and AGL Energy began trading on the Australian Stock Exchange on 12 October 2006.

Executive team

AGL is headed by Managing Director Paul Anthony, an experienced international energy executive, who has held a number of senior executive positions with major international energy companies including PowerGen, British Gas Group and Contact Energy in New Zealand. Mr Anthony has increased the company's focus on the fight against climate change. ^[2] AGL Energy's chairman is Mark Johnson, former Deputy Chairman of Macquarie Bank, Australia's largest investment bank.

Customers

More than 6 million Australians use AGL’s gas and electricity, including leading brands such as Coopers Beer and Arnott’s biscuits.

Climate change

AGL was the first Australian energy company to provide an accredited Green energy product, and was the first Australian company to join the Chicago Climate Exchange, the world’s first carbon trading exchange. In joining the CCX, AGL has committed to a 6% reduction in emissions, based on 1998/2001 levels. It is the only Australian energy company which has imposed such strict carbon limits on itself. In the past 12 months AGL has committed to invest more than $2 billion in renewable generation and has under construction a number of wind and new hydro facilities.

Operations

AGL has told the Australian Securities Exchange that its Four Corners strategy is its blueprint for future growth.^[3] AGL seeks to take cornerstone positions in four areas – upstream electricity and gas supply, and the downstream retail of electricity and gas.

Electricity generation

AGL’s 1700MW electricity generation portfolio includes:

• 32.5% stake in coal-fired Loy Yang Power Station (Vic)
• Gas-fired peaking plant at Somerton
• Torrens Island Power Station (TIPS)
• AGL Hydro’s 11 generating schemes
• Wattle Point Wind Farm
• Small-scale biomass, landfill and cogeneration projects

Source	Electricity generated
Loy Yang A (32.5% equity)	2120MW
Somerton	150MW
Pinjarra 1&2 (33% equity)	280MW
Victoria Hydro	592MW
NSW Hydro	52.5MW
Torrens Island Power Station	1280MW

Projects under way include:

• Bogong hydro peaking station (Vic)
• Hallett Wind Farm (SA)
• Hallett Hill Wind Farm (SA)
• Macarthur Wind Farm (Vic)
• Base-load power station in Townsville (QLD)
• Leafs Gully Power Station (NSW)
• Electricity demand: Demand for peak electricity is growing by about 4 per cent annually
• A 100MW generator will power more than one million light bulbs at the same time.
• A 600MW power station can power 200,000 homes.

Gas generation

AGL’s wholesale gas portfolio includes more than 4000 petajoules of equity and contracted gas reserves, with long-term contracts sourced from the Cooper, Surat and Gippsland basins. Other investments include a 50 per cent stake in Moranbah Gas Project, one of Australia’s largest coal-seam methane projects. Moranbah’s output represents about 12 per cent of the Queensland gas market. A 27.5 per cent stake in the Queensland Gas Company

Source	Amount of gas
Cooper Basin	605PJ
Surat Basin	1222PJ
Gippsland Basin	1250PJ
Sydney CSM (50% equity)	145PJ
Moranbah (50% equity)	16PJ
QGC (27.5% equity)	540PJ

Gas usage: 1 million gigajoules (GJ) = 1 petajoule (PJ) An all-gas household, with gas used for cooking, heating and hot water, will use about 30GJ of gas a year.

Downstream electricity retail

1.6 million electricity customers – more than 25 per cent of South Eastern Australia’s residential and small commercial energy users.

Downstream gas retail

2.1 million gas customers

Energy investments

AGL has a diversified range of investments in generation, transmission, distribution, retail and energy related businesses:

• ActewAGL (50%), Elgas (50%), H C Extractions (HCE) (100%), and the owner of Loy Yang Power, GEAC (32.5%).

Criticism of AGL Energy

Recently, AGL South Australia was criticised in the South Australian Parliament by Chloe Fox MP for the working conditions she claimed were provided by the company. Fox wrongly alleged that staff working within Customer Services were subjected to timed breaks for meals and bathroom usage. AGL was also criticised for employing staff on casual contracts so that the provision of leave and other working entitlements can be avoided. These claims were disproved by AGL in the Adelaide Advertiser on March 16, 2007. ^[4]

See also

• Renewable energy commercialization in Australia

References

1. ^ AGL website.
2. ^ ABC TV Difference of Opinion. Australian Broadcasting Corporation (30 April 2007).
3. ^ AGL presentation - Operational and Strategic Update (June 2007).
4. ^ Call Centre working conditions brutal, MP says - ABC News (Australian Broadcasting Corporation). Australian Broadcasting Corporation (14 March 2007). Retrieved on 2007-07-27.

External links

• AGL website. Retrieved on 2007-01-31.
• Energy giant backs 20% renewables The Sydney Morning Herald, 30 August 2007.

S&P/ASX 50 companies of Australia

AGL Energy Limited · Alumina Limited · Amcor Limited · AMP Limited · Aristocrat Leisure Limited · Asciano Limited · ASX Limited · Australia and New Zealand Banking Group · AXA Asia Pacific Holdings Limited · BHP Billiton Limited · Bluescope Steel Limited · Brambles Industries Limited · Centro Properties Group · Coles Group Limited · Commonwealth Bank of Australia · CSL Limited · Fairfax Media Limited · Foster's Group Limited · Goodman Group · GPT Group · Insurance Australia Group Limited · Lend Lease Corporation Limited · Macquarie Airports · Macquarie Bank Limited · Macquarie Infrastructure Group · Mirvac Group · National Australia Bank Limited · Newcrest Mining Limited · News Corporation · Orica Limited · Origin Energy Limited · Publishing & Broadcasting Limited · Qantas Airways Limited · QBE Insurance Group Limited · Rio Tinto Limited · Santos Limited · St George Bank Limited · Stockland · Suncorp-Metway Limited · Tabcorp Holdings Limited · Telecom Corporation Of New Zealand Limited · Telstra (Installment Receipts) · Telstra Corporation Limited · Toll Holdings Limited · Transurban Group · Wesfarmers Limited · Westfield Group · Westpac Banking Corporation · Woodside Petroleum Limited · Woolworths Limited · Zinifex

Energy in New South Wales
Active Power Stations	Bayswater • Eraring • Liddell • Mt Piper • Munmorah • Redbank • Vales Point • Wallerawang
Former Power Stations	Balmain • Bunnerong • Tallawarra • Ultimo • Wangi • White Bay
Companies	AGL Energy • Country Energy • Delta Electricity • Energy Australia • Eraring Energy • Integral Energy • Macquarie Generation • Origin Energy • Snowy Hydro • TransGrid
Regulators	New South Wales Department of Water and Energy
Historical entities	Australian Inland • Sydney County Council • Electricity Commission of New South Wales • Sydney Electricity • Pacific Power

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