AGL to challenge right to review
Energy giant AGL has announced it has commenced legal proceedings in the Supreme Court of South Australia in a bid to challenge the South Australian Essential Services Commission's (SAESC) right to amend its price determination of 14 December 2010.
AGL has accused SAESC of 'wrongly exercising' its power under the legislation to review prices due to "special circumstances".
The amended draft price determination was handed down on 2 October 2012. ESCOSA is due to hand down its final amended price determination later this month.
AGL claims that the review of the price determination in South Australia and Queensland would reduce FY13 Underlying Profit by approximately $45 million.
The 2010 determination, which is not due to expire until 30 June 2014, effectively sets the price at which AGL must supply electricity to its regulated customers in South Australia.