Wholesale power prices rise, page-2

From the AGL 2021 AGM page 5

In a disappointing result, it is important to note that the wholesale electricity price isthe single largest driver of AGL’s earnings and these wholesale prices have fallen toan extent not seen since 2012. In the past three years alone, prices have halved. AGLhas for some time been foreshadowing market headwinds in wholesale priceshowever it is fair to say that the extent of the fall has surprised many credible marketanalysts and observers.

And from page 4 of the CEO address

Markets continue to experience material volatility. Prices have fluctuated significantly,and demand continues to be impacted by both COVID-19 lockdowns and milder thanusual weather conditions. These factors will continue to impact our business as wenavigate COVID-19 and the transition away from coal fired power towards firmedrenewables.

Encouragingly, we have seen some improvement in forward wholesale electricitypricing in recent months. And, given that AGL produces some of the lowest costgeneration in the National Electricity Market, we are very well positioned to benefitfrom any sustained recovery in wholesale electricity prices - the single biggest driverof AGL’s earnings.

That material lift is now in gear