AGL sheds staff ahead of demerger

AGL's Bayswater Power Station (agl fortescue)
Bayswater Power Station

Australia’s largest electricity company AGL is cutting staff in its coal and gas power-plant workforce ahead of its planned demerger next year, according to ABC News.

AGL confirmed it was giving eligible employees in its integrated energy business the opportunity to express interest in leaving the business with a voluntary redundancy.

An AGL spokesperson said, “We will assess employee submissions for voluntary redundancy to ensure we maintain the right resources and skills to safely and reliably continue to supply energy, while addressing the need to respond to market and operating conditions in order to maintain a sustainable business. Safety of our people will remain our highest priority throughout this process. 

“As we work through these changes, AGL’s priority is to support our people by providing them with regular updates and opportunities for feedback and discussion as part of the Voluntary Redundancy process.”

Related article: AGL breaks ground for Torrens Islands battery

The redundancies are reportedly be linked AGL’s planned demerger, whereby all four power plants will be owned and operated by a newly formed company.

Under the demerger, AGL Energy will split into two separately listed entities, with AGL Energy becoming Accel Energy Limited (Accel Energy, previously referred to as “PrimeCo”)—an electricity generation business focused on the accelerating energy transition.

Accel Energy will demerge into a new entity, AGL Australia Limited (AGL Australia, previously referred to as “New AGL”), a multi product energy-led retailing and flexible energy trading, storage and supply business. AGL Australia will retain the AGL brand.

AGL Energy intends to hold a scheme and general meeting to enable shareholders to vote on the proposal, and to complete the demerger in the fourth quarter of the financial year ending June 30, 2022, subject to final AGL Energy Board, ATO and relevant regulatory, court and shareholder approvals. After the demerger, AGL Energy shareholders would hold one share in each of Accel Energy and AGL Australia for every share they own in AGL Energy on the applicable record date.

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