AGL letters stun Adelaide customers as bills soar by up to 50pc, as it reveals expected $255m-$285m profit

Just after telling customers its prices would rise even higher than previously expected, AGL announced a record profit of up to $285m – and says it will double that next year.

Adelaide householders have taken to social media to vent their frustration at AGL bill increases well beyond the claimed 29.8 per cent.

But it comes as the energy giant’s shares surged on Friday after the company forecast its profits would more than double in the coming financial year, during which time households will be grappling with their own surge – in electricity costs.

The energy company’s shares were up more than 14 per cent to $11.05 in early trade on the ASX after AGL said its underlying profit after tax would come in at between $255m and $285m – the top of the previously forecast range.

The underlying profit after tax would then more than double to between $580m and $780m in the 2023-24 financial year, the company said.

Just last week, AGL broke the news via the media that its electricity rates would drastically increase, but some customers say the changes were a vast underestimate when compared with letters they have received this week from the power giant.

Unley pensioner Jim Warwood, 74, took to Facebook to warn others to check their bills, after he found much larger increases in charges for off-peak power.

“Beware electricity pirates!” he posted.

Mr Warwood said his household bill was likely to jump from $2400 to $4000.

His letter shows an increase in the peak electricity charge close to that claimed by AGL; from 36.18 cents per kilowatt hour to 48.13, an increase of 33 per cent.

But shoulder power use jumped 58.7 per cent from 20.33 c/kWh to 32.26 c/kWh.

And off-peak electricity, which many of AGL’s 350,000 customers use to keep costs down, will go up 50.6 per cent from July 1.

“Overall it will probably be about a 40 per cent increase, so way above what people have been spruiking,’’ he said.

“Just to ensure the top managers get their bonuses and they all get new cars and big pay rises.”

AGL has stood by the company’s 29.8 per cent increase estimate – $565 – in South Australia, and rejected comparisons between individual bills because each account was different.

AGL has a $70 million support package over two years for the 19,500 customers who struggle to pay their bills. They will receive up to $400 in bill credits.

“We understand that higher energy prices will put pressure on households and businesses amid the broader cost of living pressures Australians are facing at the moment,’’ a spokeswoman said.

“There have been major global energy challenges over the past 18 months, and we’ve seen significant rises in wholesale energy prices in Australia.

“The increase in wholesale energy prices has been mainly driven by unprecedented market volatility from increases in global fuel prices due to geopolitical factors and volatile market conditions, along with supply disruptions.

“Our decision to increase prices for our market contract customers is based on a detailed consideration of a range of factors including wholesale prices, network charges, retail operating costs, customer affordability and the value we offer to our customers.”

For any customer in SA experiencing a 50 per cent increase AGL has applied bill credits to support them.

The state’s other big retail electricity provider, Origin, also released price rises from July 1 – on average 24.2 per cent.

Mr Warwood said his wife Lis, 74, had health issues that required warmth in the home, which was now under threat from the price hike.

“We made savings and cut back but last year we paid about $2400 and next financial year it will be $4000 they have estimated,’’ he said.

“This is going to hurt a bit.”

Another Adelaide resident also vented on Facebook.

“AGL (charges) are peak up 31.83 per cent, shoulder up 56.33 per cent, off peak up 48.96 per cent and supply charge up 11.06 per cent,’’ he posted.

“That is an average 45.71 per cent increase.”

Originally published as AGL letters stun Adelaide customers as bills soar by up to 50pc, as it reveals expected $255m-$285m profit