Merged Ergon and Energex headquarters to be based in Townsville

The Palaszczuk Government will establish a new Energy Services subsidiary in Townsville as part of its plans to merge energy distribution businesses Energex and Ergon Energy.

Treasurer Curtis Pitt said that the merged business, which is yet to be named, would deliver regional jobs and energy solutions to remote and isolated communities around Queensland.

“We are building an energy business for the future and it will be the largest power company in Australia with over $24 billion dollars in assets,” he said.

“The merger would remove duplication in areas like administration, shared services, boards, management and corporate costs.

“There will be no forced redundancies, however all four businesses are expected to reduce their staff levels by a combined 366 people between now and 2020 as a result of the merger.

“Importantly, frontline staff will continue to deliver network services in their respective regions, while a new energy services subsidiary will be formed and incorporate Ergon Retail, which is anticipated to create up to 500 positions in regional areas over the next decade.

“The new energy services subsidiary will look at options to utilise renewable technologies in regional Queensland, particularly in remote and isolated areas, to improve reliability and sustainability of electricity supply.

“It will play a key role in preparing for the changing energy market and making sure that we are positioned to take advantage of emerging opportunities.

“Technological advances have opened up an exciting world of options to use renewable technologies particularly in remote areas, to improve reliability and sustainability of electricity supply for rural and remote customers.”

This business will support the development of regional Queensland and will have a clear focus on providing regional Queenslanders with access to the innovative new products and services available in other parts of Australia.

Acting Energy Minister, Leeanne Enoch, said the business would offer solar technology solutions, battery storage, energy management systems, smart meters and demand management services to respond to customer needs.

“Creating this new energy services subsidiary is a key element of the Queensland Government’s plan to merge Energex and Ergon Energy to improve network efficiency and reduce pressure on electricity network prices for customers over the longer term,” Ms Enoch said.

“The two distribution companies will be consolidated into a single new network business, with a new parent company expected to be in place by mid-2016.

“The merger will mean that the two networks can better leverage scale to invest in new technologies and to find ways to better manage increasing levels of solar generation.”

The structure of the new energy services business will ensure it operates on a level playing field with other businesses that offer new energy services.

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