I just don't know any more how much of electricity price can be put down to a rip off. Its not as if AGL's share price has been doing great last few years because it has been enjoying supernormal profits or anything. It was up over $20/share before COVID.
Retail prices are regulated by AER which caps the price that can be charged that limits profits that can be made. Then there is lots of federal and state government ownership of companies that allow governments to impact prices as a player in the wholesale market (e.g. Snowy Hydro, Queensland generation ownership) as well as states like Victoria restarting the SEC.
Can you imagine the same in grocery or banking? If federal and state governments started setting up their own banks or grocery stores to limit price gouging in the those industries.
In electricity a lot of the price increase recently has been due to flow through of higher gas and coal prices caused by the Ukraine/Russia war.
AGL Price at posting:
$8.80 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)