👉 Background: AGL is the largest energy and gas company in Australia, with more than 4.3 million customers. It has been in the spotlight over the past two years after its battles with Mike Cannon Brookes, and its struggle with the fluctuating wholesale electricity prices.

👉 What happened: All these struggles seem worlds away as AGL announced their core net profit has quadrupled over the past 6 months—we're talking a net profit of $399 million, which is up from just $87 million last year.

And, there are two reasons for this monster increase in profit:

• They saw improved performance at their power stations
• They increased their energy and gas prices for customers

👉 What else: The average rise for AGL's household customers in NSW was nearly 30% over the past year. And while investors may be celebrating, it also puts pressure on AGL to reign in its pricing for such a critical service.

What's the key learning?

💡In Australia, the discussion about whether big companies should keep their prices 'fair' is getting louder, especially for those companies that are selling the essentials... and generating mega profits.

💡When the wholesale electricity market became volatile in 2022, the energy regulators allowed energy providers to increase their prices. But as wholesale electricity prices started to stabilise, the energy providers were still able to charge these higher rates.

💡And it's not just AGL Energy getting the side-eye. Coles and Woolworths are also getting heat from the government with a new Senate inquiry into price gouging - so watch this space!

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