AGL Energy expects to unveil new CEO by year-end, sticks with Liddell closure plan

AGL expects to announce a new CEO by the end of the year after Andy Vesey’s shock exit, as it sticks with Liddell closure plan.

Outgoing AGL CEO Andy Vesey and chairman Graeme Hunt at last year’s AGM in Melbourne. Stuart McEvoy/The Australian.

Power giant AGL has no plans to change its strategy including the 2022 closure of the Liddell coal-fired power station in NSW and expects to appoint a new chief executive by the end of the year after the abrupt exit of former boss Andy Vesey.

The closure of Liddell was not driven by ideology but is rather an operational decision to help manage the company’s risk and move to a “sustainable and responsible transition” to a new cleaner power mix.

“It is not a question of ideology on our part. Far from it,” AGL interim chief executive Brett Redman told the company’s annual general meeting in Melbourne today. “And neither is the need to address our carbon exposure more generally. It is a question of prudent and pragmatic risk management.”

The Sydney-based company (AGL) also conceded widespread concern about high power prices which it said had jumped “significantly and probably unsustainably” in recent years.

It puts the blame for the price hike on higher prices for coal and gas, the closure of coal-fired power stations like Hazelwood, a spike in network costs and continued uncertainty over government policies following the dumped national energy guarantee.

AGL is working with new energy minister Angus Taylor to address affordability and stimulate further investment in new generation while boosting the confidence of the industry among Australian consumers.

Mr Taylor warned last month the government is prepared to “wield a big stick” to reduce high power prices in a speech where he accused the energy giants of acting like the Big Four banks in breaching the trust of Australian consumers.

A general view of the Liddell Power Station in Muswellbrook, New South Wales. Picture: AAP

AGL confirmed an earnings forecast for the 2019 financial year of $970 million to $1.07 billion which had previously been given at its results in August.

“The midpoint of this range represents a broadly flat outlook for earnings when compared to the 2018 result,” AGL chairman Graeme Hunt said at the AGM.

AGL’s board had stepped up its focus on finding a replacement for Mr Vesey in the months leading up to the announcement he would leave in August, according to Mr Hunt, and is “well progressed” with a domestic and international search for a new boss to lead AGL in the long-term.

“The search to date has identified strong internal and external candidates,” said Mr Hunt. “On present indications we expect to announce the results of this process by the end of the year.”