AGL Energy Limited Case Study

AGL Energy Limited can be considered to be part of the Diversified-Utilities industry incorporating Gas Utilities and Electric Utilities. In the past few years power generation in Australia has changed due to people’s want for a reliable source of power and increasing electricity tariffs (Dickers, 2016). AGL is currently Australia’s number one energy generator and retailer and along with two other firms supplies energy to 80% of all Australian customers (Brocklehurst, 2018). The demand for energy efficient products such as solar panels, battery energy storage and wind power in the industry has never been so high. Customers within the energy sector are currently experiencing increasing energy prices. Major factors which have led to this include the retirement of Hazelwood in early March 2017, which supplied the equivalent of 20% of Victoria’s electricity consumption. Furthemore there has been substantial increases in gas prices and a lack of investment due to the uncertainty existing in the current market.

However with pushes to introduce higher power bills amongst other factors its future may not remain so stable. With increasing costs AGL fight to retain their customers as they look towards cheaper alternatives. The sector is facing rapid transformations resulting in stronger retail competition. Companies such as AGL are being forced not only to compete on price but with innovation on new services and products. AGL is facing competition in the eastern states from Alinta Energy, a growing company in the energy sector as well as continuous competition from its main competitors Due Group (DUE) and Australian Power and Gas Company Limited