AGL under pressure to explain Vocus takeover

Original article by Lucas Baird, Simon Evans
The Australian Financial Review – Page: 15 & 22 : 12-Jun-19

Vocus Group has agreed to allow AGL Energy to commence due diligence after offering $4.85 per share for the telco. AGL investors have responded bearishly to the $3bn bid, with its share price falling 7.2 per cent to $19.40 on 11 June. Sentiment toward AGL was also affected by an earnings downgrade on 7 June, before the stock market closed for a long weekend. Justin Braitling of Watermark Funds Management and James Nevin of RBC Capital Markets have questioned whether Vocus is an appropriate target for AGL.

CORPORATES
AGL ENERGY LIMITED – ASX AGL, VOCUS GROUP LIMITED – ASX VOC, WATERMARK FUNDS MANAGEMENT PTY LTD, RBC CAPITAL MARKETS, EQT INFRASTRUCTURE, M2 GROUP LIMITED

Renewables power ahead

Original article by Ben Potter
The Australian Financial Review – Page: 8 : 29-Mar-19

According to Green Energy Markets, renewable energy generated 128 per cent more electricity than gas turbines over the 2018-19 summer and 23 per cent more than brown-coal generators. It was the fourth summer during which renewables have provided more electricity than gas and the second summer that renewables generated more electricity than brown coal. The output from solar between 9am and 5pm exceeded output from brown coal and gas for the first time.

CORPORATES
GREEN ENERGY MARKETS PTY LTD

Gen-tailer’s 24pc profit lift too high: Taylor

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 22 : 26-Feb-19

EnergyAustralia has posted a 2018 net profit of $566m, which is 24 per cent higher than previously. The result was boosted by higher wholesale electricity prices, while parent company CLP Group says EnergyAustralia’s return on invested capital rose to 10.7 per cent, compared with just 3.3 per cent in 2014. Federal Energy Minister Angus Taylor has responded to strong earnings growth in the electricity sector by again urging generator-retailers to provide price relief for customers.

CORPORATES
ENERGYAUSTRALIA PTY LTD, CLP GROUP, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, ORIGIN ENERGY LIMITED – ASX ORG, AGL ENERGY LIMITED – ASX AGL

Taylor blasts AGL’s high prices

Original article by Perry Williams
The Australian – Page: 17 & 27 : 8-Feb-19

Energy Minister Angus Taylor contends that Australians should be irate by AGL’s announcement that it has made a $537 million interim net profit. He claims that AGL and other energy companies are making big profits at a time when consumers and businesses are struggling with high power prices. Taylor has also stated that comments by energy companies that the federal government’s "big stick" legislation is deterring investment is false, noting that investment in the sector will exceed $25 billion over the three years to 2020.

CORPORATES
AGL ENERGY LIMITED – ASX AGL, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, ALINTA ENERGY (AUSTRALIA) PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG

Households may have to pay more to ease power crunches

Original article by Ben Potter, Angela Macdonald-Smith
The Australian Financial Review – Page: 10 : 29-Jan-19

The Grattan Institute’s energy program director Tony Wood has cautioned against an overreaction to the recent rolling power blackouts that impacted South Australia and Victoria. Charging consumers more to use air conditioners during extreme heat has been put forward as one solution to the problem of matching demand with supply during such weather conditions, as has simplifying the regulatory test for new transmission links.

CORPORATES
GRATTAN INSTITUTE, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, TRANSGRID, SPARK INFRASTRUCTURE GROUP – ASX SKI, ENERGYAUSTRALIA PTY LTD, SCHNEIDER AUSTRALIA

Heat stress: power crisis hits home

Original article by Perry Williams, Rachel Baxendale
The Australian – Page: 1 & 5 : 25-Jan-19

The Australian Energy Market Operator asked power users in Victoria and South Australia to cut their electricity usage on 24 January as the electricity grid struggled to cope with soaring temperatures. Households were urged not to use appliances such as washing machines during peak periods, while Alcoa was asked to cut production at its aluminium smelter in Victoria for around two hours in the evening. Around 20,000 households in Adelaide were hit by blackouts, although no blackouts are expected on 25 January, with a cool change due for both states.

CORPORATES
AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, ALCOA OF AUSTRALIA LIMITED, AGL ENERGY LIMITED – ASX AGL, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, ENERGYAUSTRALIA PTY LTD

Heatwave triggers AEMO reserve shortfall warning

Original article by Tim Boyd
The Australian Financial Review – Page: 4 : 15-Jan-19

A heatwave in Victoria has prompted the Australian Energy Market Operator to issue a reserve warning, amid fears that the state could be hit by blackouts. Energy experts state that the reserve warning is a signal from AEMO to the electricity market that it is seeking more capacity, and is not necessarily a cause for alarm. EnergyAustralia has stated that it has around 20 megawatts of capacity in Victoria that can be activated at times of high demand. Northern parts of Victoria have been subject to very high temperatures in recent days.

CORPORATES
AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, ENERGYAUSTRALIA PTY LTD, AGL ENERGY LIMITED – ASX AGL, AUSTRALIA. BUREAU OF METEOROLOGY, ORIGIN ENERGY LIMITED – ASX ORG

Policy vacuum won’t stop green power: energy chief

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 & 16 : 11-Jan-19

Wind turbine supplier Vestas Australia enjoyed a record year for orders in 2018, with over one gigawatt of wind turbines ordered in total. Peter Cowling, the head of Vestas Australia, predicts that the renewable energy sector will "muddle through" the lack of federal policy on climate and energy, due to the desire by companies to purchase clean power and the "cost competiveness" of solar and wind energy. Cowling says state governments’ renewable energy programs are helping to make up for a lack of federal policy.

CORPORATES
VESTAS – AUSTRALIAN WIND TECHNOLOGY PTY LTD

Quicker power as Origin upgrades

Original article by Perry Williams
The Australian – Page: 13 & 14 : 7-Jan-19

Origin Energy has upgraded its 224-megawatt Quarantine gas peaking plant in South Australia. As a result of the upgrade, which involved the fitting of an aero-derivative unit, it will now take Origin just five minutes to supply power to the national electricity grid, down from 15 minutes previously. Origin executive Greg Jarvis says the flexibility of its gas peaking power stations will help to support the growth in electricity being derived from renewable energy sources.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, ENERGYQUEST PTY LTD, WOOD MACKENZIE

Electricity customer satisfaction continues to slide

Original article by Roy Morgan
Market Research Update – Page: Online : 29-Oct-18

New research from Roy Morgan shows that 60.9% of Australians were "very" or "fairly" satisfied with their electricity provider in the year to September 2018, compared with 61.7% in the year to September 2017. Simply Energy had the highest customer satisfaction rating, with 67% of customers saying they were "very" or "fairly" satisfied, followed by Red Energy (66%) and Alinta (63%). The three biggest providers, Energy Australia, AGL and Origin, had relatively low satisfaction levels of 60%, 60% and 59% respectively. The latest "Customer Satisfaction – Electricity Providers Report" is based on Roy Morgan’s Single Source survey, which includes in-depth personal interviews conducted face-to-face with over 50,000 Australians per annum in their own homes, including over 14,000 interviews with people who rated their satisfaction with their electricity connection.

CORPORATES
ROY MORGAN LIMITED, SIMPLY ENERGY, RED ENERGY PTY LTD, ALINTA ENERGY (AUSTRALIA) PTY LTD, ENERGYAUSTRALIA PTY LTD, AGL ENERGY LIMITED – ASX AGL, ORIGIN ENERGY LIMITED – ASX ORG