The boss of power firm AGL says the company is working with its competitors and the Federal Government to find solutions to high power prices, as it makes a return to profit for 2017.

AGL managing director Andy Vesey was among the power firm bosses called to Canberra to front Prime Minister Malcolm Turnbull this week.

In a deal brokered by the Government, the energy retailers agreed to keep customers informed about what they pay for electricity.

Mr Vesey said new supply would bring down power prices. He urged the Government to rapidly put in place all 50 recommendations from a major report by Australia's chief scientist Alan Finkel on the energy industry, including a clean energy target.

"Ultimately, until new investment winds up in new supply, we will continue to see this tension between regulatory and government desire to intervene and what the industry will do," he told an analyst briefing.

Mr Vesey said yesterday's meeting was constructive and would be the first of many meetings with governments.

"Until we can make those additional investments to bring wholesale prices down the best we can do is ensure that all consumers have the best information they need to make the best choices in a very competitive market place," he said.

"This is something that will play out in time but I will say I was quite encouraged by the conversation, discussion, both the talking and the listening yesterday."

Mr Vesey said the industry had to do more to help customers in hardship.

"As an industry we are going to rise to this challenge, customers are going to have the information they need," he added.

AGL bounces back to profit on rising power prices

The energy provider has returned to profit for the 2017 financial year on the back of significant rises in wholesale electricity prices and despite a small fall in customer numbers.

AGL said higher fuel costs and "the disorderly withdrawal" of coal fired generation had pushed up power prices.

AGL will close its Liddell power plant in 2022.

Mr Vesey took a swipe at the sudden closure of the Hazelwood power plant earlier this year.

"The long notice period we have given reflects our commitment to managing carbon risks for shareholders and avoiding the volatility created by recent sudden withdrawal of capacity," he said.

Mr Vesey said replacing the 1,680 megawatts of capacity generated by Liddell would most likely be a combination of solar and wind power.

"Short-term new development will continue to favour renewables supported by gas peaking," he argued.

"Longer term we see this trend continuing with large scale battery deployment enhancing the value of renewable technology.

"In this environment, we just don't see new development of coal as economically rational even before factoring in a carbon cost."

He said AGL was doing a detailed assessment of potential electricity supply up until 2025 for the National Electricity Market.

The power firm made a net profit for 2017 of $539 million compared to a net loss in 2016 of $408 million.

AGL's underlying profit beat analysts' forecasts.

AGL will return $1.1 billion to shareholders from higher dividends and a share buyback.

Investors will get a final dividend payout of $0.50 a share, partially franked, up $0.14 from the same time a year ago.

Total dividend payout for the year stands at $$0.91 a share, up $0.23 cents from 2016.

AGL has more than $2 billion of projects under development.

This includes $250 million to build a planned liquefied natural gas import terminal at Crib Point in Victoria and the $900 million Coopers Gap wind farm in Queensland, 180 kilometres north west of Brisbane.

The company is also expanding its retail power business in Western Australia and has signed up 1000 customers so far.

AGL expects underlying profit after tax for 2018 to come in at between $940 to just over $1 billion.

But Mr Vesey warned that was subject to changes in energy policy by governments.