AGL creating new SA investment plan

Energy giant AGL has confirmed it will be reworking its investment plans in South Australia to account for the state government's new power strategy.

But the company says its new plans will be just as extensive as those it had in mind before the government released its energy plan last month.

"AGL is developing a new investment proposal to meet the needs of consumers in South Australia," chief executive Andy Vesey said in a statement on Monday.

Mr Vesey said AGL's new plans would contain "different components" but did not specify what those were.

The comments come after the Australian Financial Review reported Mr Vesey told investors last week the company had frozen plans for a new gas-fired plant in SA after the state government announced it would be building its own.

Premier Jay Weatherill and Energy Minister Tom Koutsantonis responded to the initial reports of AGL's plan changes, saying they would be happy to see the company's sway over SA's power market weakened.

Mr Koutsantonis said AGL has been charging "extraordinary prices" in the state but the power plan is attracting more competitors in the SA market that could help bring prices down.

Mr Weatherill said SA has been "screwed for too long by large power companies".

"If there are big power company squealing, the plan's working," he told reporters.

The premier said his verbal stoush with federal Energy Minister Josh Frydenberg at a recent AGL event, as Mr Vesey watched on, had nothing to do with the company changing its plans.

"He (Mr Vesey) thought it was a great laugh," Mr Weatherill said.

Opposition Leader Steven Marshall said the initial reports on AGL's change of plans showed the state government's energy plan was causing an investment strike.

"This is an absolute disaster for South Australians. Higher prices and no private sector investment," he told reporters.