Carbon tax implementation was smooth: AGL

22 Aug 2012, 5:25 pm   -   Source: AAP
Energy supplier AGL Energy says the federal government's carbon tax has been implemented smoothly. (AAP)

Energy supplier AGL Energy says the federal government's carbon tax has been implemented smoothly. (AAP)

AGL Energy says the implementation of the carbon tax has been very smooth.

The implementation of the federal government's carbon tax has proceeded smoothly, says energy supplier AGL Energy.

Managing director Michael Fraser said on Wednesday there had been no drop in the household consumption of electricity arising from the introduction of the carbon tax on July 1.

Mr Fraser said AGL had received many consumer inquiries from consumers trying to understand the price effect of the carbon tax.

"But I have to say after the first week that has really dropped to a trickle," he said.

"We are getting people looking for discount deals because there is plenty of competition out there in the market.

"But the actual implementation of carbon pricing has been very smooth."

AGL on Wednesday booked a net profit of $114.9 million for the year to June 30, 2012, down from $558.7 million in the prior year.

The bottom line was pulled back by $155.1 million in significant items and $212 million in changes to the value of financial instruments used to manage risks associated with electricity purchase prices, interest rates and foreign exchange.

Included in the significant items were $174.3 million in revaluations and costs associated with the acquisition in June 2012 of Australia's third largest coal-fired power station, Loy Yang A.

AGL's underlying profit, which takes out one-off items, was $482 million, up 11.8 per cent from $431.1 million previously.

AGL said that in fiscal 2012, customer accounts grew by 180,000, with increases in all states.

Mr Fraser said a highlight was the growth in the numbers of electricity customers in NSW by 32.5 per cent.

NSW was expected to become AGL's largest market for electricity in terms of customer numbers and volume.

The company said it would achieve good growth in its Merchant Energy business - a wholesaler of gas and electricity - in the 2012/13 financial year due to the additional contribution from Loy Yang.

AGL said the integration of Loy Yang and an adjacent coal mine was progressing well.

AGL expected solid growth from its Retail Energy business, which services residential and small businesses - despite soft demand for electricity.

Mr Fraser said softer demand for electricity was partly a result of the impact of the high Australian dollar on the manufacturing sector.

He said demand for electricity had also been affected by the penetration of rooftop solar panels into the energy market.

Demand had also been softening before the introduction of the carbon tax as consumers responded to tariff increases driven by higher network charges.

AGL said it expected continued growth in underlying earnings per share in fiscal 2013.

Shares in AGL were six cents lower at $15.69 on Wednesday.

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