2019 CEO Survey: Brett Redman, AGL

The AGL chief executive says energy markets need to adapt to technology to thrive.

AGL CEO Brett Redman. Picture: David Geraghty

Every year The Australian’s John Durie asks some of the biggest names in Australian business five key questions about what’s coming in the year ahead.

Here, in his own words, is what AGL CEO Brett Redman sees ahead in 2020.

READ MORE: John Durie’s 2019 CEO Survey.

How is your company affected by low-interest rates and what is needed to boost the economy?

Low rates are just a part of making investment decisions, and we’ve been getting on with it for a long time now – we have $1.9bn worth of projects completed or under construction and another $2bn worth in the pipeline. The real key to boosting the economy is boosting confidence in the long-term outlook. Companies can do that by getting closer to their customers to build understanding and trust. The government can support confidence with investment in infrastructure and cutting the red tape.

What is the impact of government regulations on your company, including those applying to the financial sector?

We provide an essential service, so government regulation is significant in how we trade and retail energy. Less obvious, but probably more impactful, are the processes of approval to build and connect new generation. It’s important companies earn trust in local communities where they want to build, but also that government and regulators work to support getting the new wave of generation built and connected, which the country needs.

What percentage of company revenues are spent on research and development, and how is your company using technology to improve performance?

There are significant change and transformation taking place across the energy industry, so innovation is a crucial part of our business. Our spending is a small percentage if you choose to express it in those terms, but it’s significant, and it’s growing. We embed innovation in everything we do, making it hard to quantify separately. It includes creating a dedicated business unit called Future Business & Technology with a seat at the exec table and investing around $100m in global R&D funds. We led the development of wind and solar and intend to do the same with energy storage and have recently announced innovative new battery storage projects that will allow us to draw on huge grid-scale batteries to provide affordable power to our customers in peak periods.

What are the three major policy issues facing the country and what should be done about them?

● Ensuring a good environment for new investment, particularly to facilitate the energy transition: We need predictable approaches that draw forth the best ideas from the market, and regulation that achieves good social and environmental outcomes at least cost.

● Retaining productive jobs in regional areas: Fostering competitive export industries, new investment in electricity generation that sets Australia up for the energy transition, and good access to essential services such as telecommunications.

● Ensuring the vulnerable in the community are protected: Government and business to work in partnership with community groups to ensure vulnerable citizens and customers are treated fairly and can access essential services at a reasonable cost.

What are the major impediments to long-term growth facing your company and what can or is being done about them?

Right across the energy sector, we are facing unprecedented change. Any business in this sector has to be innovative and malleable to ensure long-term growth. The challenges the sector is facing is why the debate around energy in Australia is so intense but equally why it is so important. We know that customer-centricity in a digital world, closure of ageing coal-fired power stations alongside the growth of renewables, climate risk and mitigation, and finally, disruptive technologies are driving major and unavoidable shifts in energy. And while these are some of the biggest changes we’ve seen in decades, I want my team to begin to see these as some of our biggest opportunities – opportunities I believe will transform the energy story in Australia for the better.