AGL Energy boss in sudden exit just weeks after radical plan to split, move away from coal to green power unveiled

The boss of coal-fired power giant AGL Energy has suddenly quit, just weeks after the company unveiled a radical plan to split the business.

The boss of AGL Energy has announced his shock departure after almost 15 years with the company, following its radical restructure plan unveiled just three weeks ago.

Late last month, AGL proposed splitting into two new businesses dubbed “New AGL” and “PrimeCo”.

The former would become Australia’s largest multi-product energy retailer “leading the transition to a low carbon future” while the latter would be the nation’s biggest electricity generator, moving away from coal and towards renewables “as the energy market evolves.”

PrimeCo would continue to operate existing coal assets “until they are no longer needed or commercially viable, retaining AGL’s commitments not to extend their life or invest in new coal power,” chief executive and managing director Brett Redman said on March 30.

Brett Redman’s resignation is effective immediately. Picture: Britta Campion/The Australian

Then on Thursday, AGL said Mr Redman had quit - effectively immediately - and he “believed he could not make a long-term commitment beyond the proposed structural separation”.

He would “remain available to AGL” until the expiry of his notice period on October 21, however.

Mr Redman said he was pleased to have established the case for the structural separation of the business.

“The timing of my departure will enable the leadership team to be established to execute upon the separation strategy and lead the business into its next chapter,” he said.

Brett Redman (left) with South Australian Energy Minister Dan Van Holst Pellekaan at AGL's Torrens Island Power Station, the site of the state's new biggest battery. Picture: Supplied by AGL

AGL’s current chairman Graeme Hunt has stepped in as interim managing director and chief executive, and will lead the process of planning the restructure, including considering long-term leadership of the two proposed new businesses.

Non-executive director Peter Botten - who led Oil Search for 25 years - has been appointed chairman.

AGL shares fell 2.2 per cent to $8.86 in afternoon trade.

They have been in a downward spiral for several years after eclipsing $27 back in 2017.

AGL shares have been plunging for years and the restructure announcement on March 30, when they closed at $9.81, didn’t prove to be a circuit breaker. Picture: Kelly Barnes/AAP

When the restructure was announced, Macquarie Research said AGL was “tapping into the need for green”, labelling the move “a breath of fresh air”.

“Currently as a large coal-fired gentailer (power generator and retailer) it is compromised,” Macquarie said.

Ratings agency Moody’s Investors Service said the proposal could lead to an improvement in AGL’s overall business profile.

The restructure was revealed just hours before AGL noted its planned Crib Point LNG terminal on Victoria’s Mornington Peninsula had been knocked back on environmental grounds, saying it was “reviewing and considering its position” after spending $130m on the project, which had sparked protests.

Protesters gather outside Parliament House to oppose AGL’s plan to build a gas import terminal at Westernport Bay. Picture: NCA NewsWire/Andrew Henshaw