AGL pay deal at Vic plant to end Jan 30

AGL Energy says it has been granted approval to end its enterprise agreement at the Loy Yang power plant in Victoria.

Energy producer and retailer AGL Energy has been granted approval by the Fair Work Commission to end the current pay deal at its Loy Yang power plant in Victoria on January 30.

"The decision provides AGL with an opportunity to modernise the EBA (enterprise bargaining agreement) and remain competitive amid significant challenges facing the energy industry," the company said on Friday.

AGL says it has been negotiating with the unions at Loy Yang for more than 18 months, and remains hopeful of reaching a new agreement.