Aussies should be ‘outraged’ AGL not passing savings on to struggling families: Energy minister

Australians should be “outraged” AGL has delivered a 10 per cent boost to its profit in part driven by rising energy prices, Energy Minister Angus Taylor said.

Australians should be “outraged” AGL has delivered a 10 per cent boost to its profit in part driven by rising energy prices, Energy Minister Angus Taylor said on Thursday.

The power giant made a $537 million half-yearly profit and Mr Taylor said it showed power companies were benefiting from the suffering of families struggling to pay their bills.

Energy Minister Angus Taylor says Australian’s can be ‘outraged’ at AGL’s profit. Picture: AAP

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The profit was a 10 per cent increase from $487 million over the same period last year and 138 per cent higher than 2011.

It comes as AGL chief executive Brett Redman has revealed the company would continue to profit from its Liddell coal-fired power station in the Hunter Valley until it is shuttered in 2022 — a decision which experts fear could leave NSW’s electricity supply dangerously short.

“The big energy companies continue to take record profits, while Australian families and businesses continue to struggle under the burden of high energy prices,” Mr Taylor said.

This week energy companies including the big three — AGL, Energy Australia and Origin — desperately argued against the government’s “big stick” legislation at a parliamentary inquiry into a proposal which would force companies to pass cost savings on to customers.

Mr Redman said he could not put a dollar figure on the cash injection the Liddell coal plant was receiving but that it was “profitable today, otherwise it wouldn’t be running”.

AGL says the Liddell Power Station is still profitable. Picture: AAP

“We’ve never shied away from saying that it is profitable today and that we expect it to be profitable more or less until the end of 2022,” he said.

AGL’s decision to close Liddell and refusal to sell it prompted the Coalition to consider laws to force companies to sell off assets.

“These companies have had it too good for too long, and are desperate to protect their patch from fairer rules introduced by the Morrison Government,” Mr Taylor said.

“The big energy companies should hate these laws. They are designed to force them to finally put their customers first.

“We make no apology for these laws. If the market was working well, they would not be required. Instead, your power bills are being held hostage to the market dominance of the big energy companies — and every Australian is wearing the cost.”

AGL boss Brett Redman. Picture: Hollie Adams/The Australian

Prior to the lashing Mr Redman described his relationship with the Coalition and Labor as “good”.

“I think there is a good two-way flow of information and an ability to work with both sides of the house,” he said.

Australian Consumer and Competition Commission chief Rod Simms has said consumers would benefit from the sale of Liddell because it would increase competition in the market.

Shares in AGL slumped on Thursday despite its profit after it announced a $25 million upgrade to Victoria’s Loy Yang coal-fired power station.

In a statement to the ASX, AGL also revealed it had secured an option over a 250MW pumped hydro energy storage project at Bells Mountain near Muswellbrook in NSW.