Predatory Capitalism

Let’s close coal plants so AGL can triple its profits

Last year AGL made $539 million net profit. This year, $1,600 million. What’s not to like about closing Hazelwood?

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Profit statements confirm what we’ve said — closing cheap coal boosts profits for generators. No wonder AGL won’t sell Liddell for a hundred million dollars. It also shows us that the big “bubble” in electricity prices is from the doubling of wholesale electricity costs. These corporates are reaping it in far above costs. The way to cut wholesale prices is to get rid of the RET, and fix our old coal.

[ABC] Its underlying profit, which excludes one-off items and changes in value in investments and hedging positions, rose 28 per cent to $1.02 billion, at the upper end of the company’s guidance.

Even Andy Vesey admits the coal closures helped AGL:

“This increase in prices in the broader electricity market has mostly been a result of the abrupt closure of non-AGL power stations such as Hazelwood in 2017 and Northern in 2016 and higher input costs from coal and gas,” AGL chief executive Andy Vesey said.

But watch the pea. Who is trying to blame high profits on higher input costs?

Then he tosses […]

In a fake free market 2000MW = 1000MW and Liddell coal is worth more destroyed than sold

The Australian Fake Free market is so screwed. What asset is worth more in the trash-can than sold to a willing bidder? AGL is the definition of Predatory Capitalism.

Everyone is talking about Liddell. The old coal plant is on the chopping block in 2022 and we can see the electricity price rise coming from here.

People in Australia are going without their veggies to pay for electricity. Liddell coal plant makes cheap electricity (like old coal plants everywhere). This is a problem that would solve itself if not for Malcolm Turnbull, the RET, and the AEMO. It takes a lot of money and whole fleets of bureaucrats to stop the free market fixing this by default.

AGL is the largest coal-fired producer in Australia, but it’s also the largest generator in toto and the largest investor in renewable energy on the Australian Stock Exchange. Spot the conflict of interest? The company controls 30% of the generation in our two largest states, and 40% in South Australia. The man in charge of AGL – Andy Vesey — formerly of New York, earns $6.9 million a year, and can probably afford to pay his own electricity bill. But as Tony Cox […]