Acting Premier gets final energy sale package underway

The Queensland Government has today commenced the final stage of its billion dollar plus energy asset sale process with Expressions of Interest called for parties interested in acquiring the Powerdirect Australia sale package.

“Powerdirect Australia is a new entity being established from the recently acquired Victorian energy retailer Powerdirect, the competitive functions of Ergon Energy retail and approximately 390,000 customers to be transferred from Sun Retail,” said the Acting Premier Ms Bligh.

“This is a unique and exciting opportunity for the energy retailing market.

The announcement follows the August decision to commence the Sun Retail and Sun Gas sale process and the 3 October announcement of the sale of Allgas distribution business.

Ms Bligh said the government would be advertising nationally for expressions of interest to achieve a sale outcome that provides a fair return to Queensland taxpayers.

“Information on how to participate in this investment opportunity can be obtained from Queensland Treasury’s website (www.treasury.qld.gov.au/energysales/powerdirect).

“The commencement of this sale process is a signficant milestone in the overall sale process.

“In April 2006 we made a commitment to undertake the sale of what were either higher risk or non-strategic energy assets — and we have followed through on that commitment,” said the Acting Premier.

“The Government has been very pleased with the interest shown in the assets it has taken to market and expects interest in the Powerdirect sale package to be no different.

“After reviewing the expressions of interest, the Government will evaluate all submissions, create a shortlist and then select a preferred bidder.

"As previously stated, the Government is committed to ensuring a smooth and efficient sale process. The bulk of the work will be completed this year,” the Acting Premier said.

“The separation of the 390,000 Sun Retail customers is a real challenge with some systems and logistical issues to work through and this will take time.

“Bidders have also indicated a preference for extra time to consider material provided through the sale data room” said Ms Bligh.

The Queensland Government Sales Team has advised that the sale date for the Powerdirect Australia package has now been extended to early February next year including a short ‘close down’ over the Christmas-New Year period.

“The extension reflects the fact that this is a large and complex process that will take time to do well and to allow bidders sufficient time to do their due diligence.

Media contact: Deputy Premier’s Office 3224 4379