High en­ergy prices to stay

Townsville Bulletin - - NEWS -

EN­ERGY prices are likely to re­main high un­til there is more in­vest­ment in power pro­duc­tion, and that re­quires cer­tainty from govern­ment en­ergy pol­icy, says in­dus­try heavy­weight AGL En­ergy.

Aus­tralia’s sec­ond- largest en­ergy re­tailer says high whole­sale elec­tric­ity prices re­flect in­creased fuel costs and the dis­or­derly with­drawal of coal- fired power sta­tions.

AGL chief ex­ec­u­tive Andrew Ve­sey says whole­sale elec­tric­ity prices have mod­er­ated in re­cent months, but the en­ergy mar­ket needs more in­vest­ment for prices to re­ally ease.

“Un­til that hap­pens, we’re not go­ing to see the kind of ( price) de­crease on a sus­tained level that we ex­pect,” Mr Ve­sey said yes­ter­day.

He said AGL was al­ready in­vest­ing in new sup­ply projects to drive down prices.

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