AGL Says Price Regulation Threatens Australia’s Renewable Target

AGL Energy Ltd. (AGK), the Australian electricity and gas retailer, said regulatory changes limiting retail power prices in South Australia and Queensland states “call into question” whether the country will achieve its renewable energy target.

“If state governments continue to interfere in regulating retail prices, it’s unlikely it will be met,” AGL Chief Executive Officer Michael Fraser told reporters today in Sydney, referring to the country’s goal of getting 20 percent of its power from renewable sources by the end of the decade.

AGL will suspend further investment in power generation, including renewable energy, in South Australia as a result of a plan in the state that would reduce the price of electricity, the Sydney-based company said today in a statement.

To contact the reporter on this story: James Paton in Sydney at jpaton4@bloomberg.net

To contact the editor responsible for this story: Iain Wilson at iwilson2@bloomberg.net

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