Electricity merger moves forward with the selection of Chair nominee

The Queensland Government has chosen an experienced power industry identity as chair nominee for the new parent company to be formed from the merger of Ergon and Energex. 

Treasurer Curtis Pitt said Phil Garling had a wealth of knowledge and first-hand industry experience from his work with some of Australian’s most successful and innovative companies. 

“With the selection of Mr Garling, we know the merger of Queensland’s electricity businesses Ergon Energy and Energex is in very experienced hands,” Mr Pitt said. 

“Most importantly, we are sure that Mr Garling’s wealth of experience means the new business will remain at the core of Queenslanders’ energy sector for decades to come. 

“Mr Garling has a well-established Board career spanning a number of listed and unlisted companies including several Chair positions.” 

Energy Minister Mark Bailey said when the NSW Government formed Networks NSW in 2012 by merging network businesses Ausgrid, Endeavour Energy and Essential Energy, Mr Garling was appointed as a Non-Executive Director. 

“In addition to his Board achievements, Mr Garling has had a successful CEO executive career with a strong commercial focus,” Mr Bailey said. 

“In his career in Australia and overseas, Mr Garling has established and led joint-venture projects and has been involved in mergers of large-scale companies. He has a strong track record of achievement and leadership.” 

Mr Garling said he was looking forward to the opportunity to be part of creating a government-owned energy business that would deliver value for Queenslanders. 

He will take up the role on 1 July 2016 following the creation of the parent company, but in the interim will start engaging with the existing businesses about the future direction and objectives. 

Treasurer Curtis Pitt said the merger of Queensland’s distribution companies would result in an energy business for the future, and the largest power company in Australia with an asset base of more than $24 billion. 

“The merged business will be based in Townsville and the CEO, when appointed, is expected to live in Townsville,” Mr Pitt said. 

“The merger is a key element of the government’s plan to improve network efficiency and achieve sustainable price outcomes for customers over the longer term. 

“Most importantly, the new merged entity will continue to support the development of regional Queensland, remaining an active employer in local communities. It’s essential to retain local resources and continue to be a leader in emergency response.” 

Mr Bailey acknowledged the service of existing Ergon Energy Chair, Clive Skarott, and Energex Chair, Gordon Jardine, who have been instrumental in helping to prepare the businesses for the merger. 

"Mr Skarott and Mr Jardine will remain in their respective roles to assist in the transition to the new merged entity, expected to be established on 1 July 2016," Mr Bailey said.   

"The makeup of the new merged entity board will be determined as soon as practicable, with a focus on an appropriate skills and expertise, regional representation and continuity."

Media contact:

Treasurer's Office 0447 316 432

Minister Bailey's Office 0419 246 157

Background information:

 Phil Garling currently sits on four Boards as a Director, with one as Chair:

• Chair — Tellus Holdings

• Non Executive Director — Networks NSW (Ausgrid, Endeavour Energy and Essential Energy)

• Non Executive Director — Charter Hall Group

• Non Executive Director — Downer EDI Ltd