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You can find the current article at its original source at https://www.theguardian.com/australia-news/2018/apr/08/josh-frydenberg-lobbies-agl-board-to-force-liddell-power-plant-sale
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| Version 2 | Version 3 |
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| Josh Frydenberg lobbies AGL board to force Liddell power plant sale | Josh Frydenberg lobbies AGL board to force Liddell power plant sale |
| (about 2 months later) | |
| The energy minister, Josh Frydenberg, has all but confirmed he had personally lobbied board members of AGL Energy in an effort to force a sale of the ageing Liddell power plant. | The energy minister, Josh Frydenberg, has all but confirmed he had personally lobbied board members of AGL Energy in an effort to force a sale of the ageing Liddell power plant. |
| Sources have told Guardian Australia Frydenberg has been calling individual board members in an effort to crash through management opposition to offloading the coal-fired facility in New South Wales to a competitor, the Hong Kong-owned Alinta Energy, which is looking to expand its market share. | Sources have told Guardian Australia Frydenberg has been calling individual board members in an effort to crash through management opposition to offloading the coal-fired facility in New South Wales to a competitor, the Hong Kong-owned Alinta Energy, which is looking to expand its market share. |
| The prime minister, Malcolm Turnbull, contacted the chairman of the company last Tuesday. | The prime minister, Malcolm Turnbull, contacted the chairman of the company last Tuesday. |
| Warning of power shortfall risk after closure of Liddell plant | Warning of power shortfall risk after closure of Liddell plant |
| When it was put to Frydenberg on Sunday that he was also involved in the highly unusual practice of speaking personally to board members, the energy minister said: “Well, we’ve made it very clear that it’s in the interests of the company to consider this offer.” | When it was put to Frydenberg on Sunday that he was also involved in the highly unusual practice of speaking personally to board members, the energy minister said: “Well, we’ve made it very clear that it’s in the interests of the company to consider this offer.” |
| Last week the AGL chief executive, Andy Vesey, insisted the company would proceed with plans to transform the Liddell site into a renewables hub, saying it will bring cheaper, greener and more reliable energy, while providing quality, long-term jobs for decades. | Last week the AGL chief executive, Andy Vesey, insisted the company would proceed with plans to transform the Liddell site into a renewables hub, saying it will bring cheaper, greener and more reliable energy, while providing quality, long-term jobs for decades. |
| The government has for months been trying to persuade AGL to sweat the Liddell asset for longer and keep the plant operating beyond its scheduled closure in 2022. | The government has for months been trying to persuade AGL to sweat the Liddell asset for longer and keep the plant operating beyond its scheduled closure in 2022. |
| While both the competition watchdog and the Australian Energy Market Operator have argued that more competition in the NSW energy market would be beneficial to consumers, the federal government has no power to force AGL to do anything with the asset it acquired from the state government in 2014. | While both the competition watchdog and the Australian Energy Market Operator have argued that more competition in the NSW energy market would be beneficial to consumers, the federal government has no power to force AGL to do anything with the asset it acquired from the state government in 2014. |
| Scott Morrison: new coal-fired power station not the answer | Scott Morrison: new coal-fired power station not the answer |
| So the government is subjecting the company to an extraordinary campaign of public pressure and private intervention in an effort to force its hand. | So the government is subjecting the company to an extraordinary campaign of public pressure and private intervention in an effort to force its hand. |
| Former deputy prime minister and Nationals leader Barnaby Joyce last week accused AGL of “shorting” the market by hanging on to Liddell rather than selling it to a competitor prepared to extend its operating life – a charge the company rejects. | Former deputy prime minister and Nationals leader Barnaby Joyce last week accused AGL of “shorting” the market by hanging on to Liddell rather than selling it to a competitor prepared to extend its operating life – a charge the company rejects. |
| The public pressure on the company has perturbed institutional investors. The Investor Group on Climate Change – a group that represents over 68 Australian and New Zealand institutional investors with more than $2tn in funds under management – wrote to Vesey last week validating the company’s approach. | The public pressure on the company has perturbed institutional investors. The Investor Group on Climate Change – a group that represents over 68 Australian and New Zealand institutional investors with more than $2tn in funds under management – wrote to Vesey last week validating the company’s approach. |
| “Many of IGCC’s members are direct investors in AGL and have engaged with AGL over many years on the significant challenges inherent in delivering capacity to market, managing price impacts for consumers and reducing greenhouse gas emissions in line with Australia’s commitments under the Paris agreement,” the IGCC chief executive, Emma Herd, said. | “Many of IGCC’s members are direct investors in AGL and have engaged with AGL over many years on the significant challenges inherent in delivering capacity to market, managing price impacts for consumers and reducing greenhouse gas emissions in line with Australia’s commitments under the Paris agreement,” the IGCC chief executive, Emma Herd, said. |
| Key backbencher warns Frydenberg to tread carefully on energy policy | Key backbencher warns Frydenberg to tread carefully on energy policy |
| “Long-term planning, an early and unambiguous notification to the market of intention to close, strategic investment in the repurposing of infrastructure and the adoption of new technologies to deliver increased generation capacity is exactly the kind of business planning that investors want to see from companies managing climate change impacts for their business. | “Long-term planning, an early and unambiguous notification to the market of intention to close, strategic investment in the repurposing of infrastructure and the adoption of new technologies to deliver increased generation capacity is exactly the kind of business planning that investors want to see from companies managing climate change impacts for their business. |
| “IGCC notes that this is the approach that AGL has adopted in providing seven years’ notice to market of intention to close Liddell power station, while investing in alternative renewable energy generation, repurposing the existing infrastructure and continuing to play a role in the local community. | “IGCC notes that this is the approach that AGL has adopted in providing seven years’ notice to market of intention to close Liddell power station, while investing in alternative renewable energy generation, repurposing the existing infrastructure and continuing to play a role in the local community. |
| “A divergence away from this plan, particularly one that does not provide a long-term vision for future uses of the Liddell power station site, its infrastructure and its workforce, would be of considerable concern to investors due to the risks and uncertainty it would create.” | “A divergence away from this plan, particularly one that does not provide a long-term vision for future uses of the Liddell power station site, its infrastructure and its workforce, would be of considerable concern to investors due to the risks and uncertainty it would create.” |
| Energy | Energy |
| Coalition | Coalition |
| Josh Frydenberg | Josh Frydenberg |
| Malcolm Turnbull | Malcolm Turnbull |
| Australian politics | Australian politics |
| AGL | AGL |
| Business (Australia) | Business (Australia) |
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