AGL Energy is launching a new partnership with flybuys that will reward thousands of consumers for everyday spending on their AGL gas and electricity in the home.

As the first and only energy retailer to partner with a program of this scale, the collaboration of AGL and flybuys is a milestone in the energy sector, offering one of the most attractive rewards incentives in the industry.

Ken Hodgson, Group General Manager of AGL's Retail Energy division, said the initiative was a response to the overwhelming popularity of rewards schemes.

"Recent research has shown that 88 percent of energy users subscribe to loyalty programs and almost two thirds (65%) feel good about companies that reward them for their custom."

"Traditionally purchasing energy has been a basic transaction, with little additional benefit for gas and electricity customers. The new relationship with flybuys is part of AGL's continued commitment to leading the energy sector by offering consumers a better choice in terms of value and service," said Mr Hodgson.

Under the new program, every dollar spent by eligible customers on their AGL household energy bills will equate to one flybuys point. Customers who successfully switch their gas or electricity account to AGL on line and satisfy eligibility criteria before 31 July 2012 will be awarded 10,000 bonus points.

"By switching a home gas or electricity account to AGL on line, eligible flybuys members will be awarded 10,000 bonus points. With these points, members can redeem a wide range of new rewards including money off at the checkout at Coles supermarkets, flights and accommodation from Webjet, as well as a host of other treats on the flybuys website."

"AGL is one of Australia's leading integrated renewable energy companies and we are committed to continuously providing added value to our customers," said Mr Hodgson.

Coles Finance Director Tony Buffin said: "I am delighted to welcome AGL to flybuys alongside our other new flybuys partners. With so many leading Australian companies on board flybuys can reward customers on most of their everyday household spend. And as new flybuys makes it easy to change points in to dollars off at the checkout customers can use their rewards to save even more money off their shopping."

Offers only available in VIC, SA, NSW and those parts of QLD where AGL operates. For more information regarding AGL's participation in the flybuys program, including terms and conditions for customers, visit www.agl.com.au/flybuys.

About AGL

AGL is one of Australia's leading integrated renewable energy companies and is taking action toward creating a sustainable energy future for our investors, communities and customers. Drawing on 175 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has one of Australia's largest retail energy and dual fuel customer bases. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas and biomass. AGL is Australia's largest private owner and operator of renewable energy assets and is looking to further expand this position by exploring a suite of low emission and renewable energy generation development opportunities.