Coal generator admits its profits will fall without a carbon tax
Guest essay by Phillip Hutchings
Within minutes of the Australian parliament voting to scrap our carbon tax today, one of our major coal-fired electricity generators issued a profit warning announcement.
(You’ve got to love the ASX. Listed companies here must publicise anything which has a material impact on profits – favourable or negative)
In this case, AGL Energy announced its pre-tax profits will fall by $186 million in 2014/15 solely due to the removal of the carbon tax. The majority of this is related to the very large, but inefficient Loy Yang brown coal station which supplies 30% of the power needs of the state of Victoria.
Loy Yang, on AGL’s own figures also released today, emits 50% more carbon dioxide than the average of Australia’s power generators. It’s amongst the single biggest emitters of CO2 in Australia.
Yet it was due to get $242 million of “Government assistance” under the carbon tax arrangements this year. Most of which found its way to the bottom line.
Source – AGL Energy Limited 17 July 2014