AGL sees coal power resurgence
Source: The Age, 2 May 2013
AGL has predicted a swing back to polluting coal-fired power generation over the next few years due to a low carbon price that will make gas less competitive.
‘‘I expect a resurgence of coal-fired power,’’ AGL chief executive Michael Fraser told a Macquarie Securities conference today.
This is because the anticipated decline in the carbon price from 2015 will take the pressure off coal prices, listing its competitive position.
Gas will also be hampered by large price rises which are now occurring as a number of large gas export projects are being developed in Queensland
Mr Fraser said intense competition in retail energy markets, coupled with weak wholesale electricty prices, was continuing to weigh on earnings, which would come in at the ‘‘lower half’’ of the net profit after tax guidance given earlier of $590 to $640 forecast for the financial year ending June 30.