AGL Energy Limited (AGL) advises that it has now completed a technical assessment of the scope and duration of works needed to return Loy Yang A Unit 2 to service. Based on this review AGL now expects this outage to extend until the second half of September. The outage extension is driven by global supply chain issues and the availability of specialised materials.

Since the initial outage, AGL has been working closely with its engineers and suppliers to plan and implement the necessary works to enable a safe and reliable return to service. Loy Yang A Unit 2 initially went offline on 15 April 2022 following an electrical fault with the generator. Subsequent testing determined that the generator rotor had failed and AGL’s preliminary estimate of the Unit’s return to service at this time was 1 August 2022.

AGL will provide an update on the FY23 financial impact of the extended Loy Yang A Unit 2 outage in the new financial year. As a consequence of the ongoing market volatility and the fact that the review of AGL’s strategic direction (announced on 30 May 2022) will not be completed until September, AGL does not anticipate issuing FY23 earnings guidance before the review has been completed.

As previously announced, the financial impact of the Loy Yang A Unit 2 outage is not recoverable via insurance.

Authorised for release by AGL’s Market Disclosure Committee.