AGL announces intention to separate business into two via a structural separation
The formation of two energy businesses focused on executing distinct strategies is planned
The energy provider AGL will separate into “New AGL” Australia’s largest multi-product energy retailer, leading the transition to a low carbon future; and “PrimeCo” Australia’s largest traditional resource based electricity generator, supporting the evolution of the energy market.
The changes were presented at AGL’s Investor Day yesterday, where shareholders were provided an update on the review of AGL’s business model and capital structure.
AGL Managing Director and CEO, Brett Redman, said that the proposed separation builds on AGL’s heritage of innovation, investment and structural adaptation to meet the needs of a dynamic industry.
Mr Redman said New AGL would be Australia’s largest multi-product energy retailer by number of services to customers, leading the transition to a low carbon future.
Generating approximately 20% of the total electricity demand across the National Electricity Market (NEM), PrimeCo would be Australia’s largest electricity generator supplying major wholesale, industrial and retail electricity users.
AGL will immediately commence a process of engaging with shareholders, regulators, government and workforce stakeholders with a view to confirming the timing and nature of the proposed structural separation by end of FY21.