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
- ^ AGL
website.
- ^ ABC TV Difference
of Opinion. Australian Broadcasting Corporation (30 April
2007).
- ^ AGL presentation - Operational and Strategic Update (June 2007).
- ^ 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
|
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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