Published Monday, 27 November, 2006 at 09:27 AM
JOINT STATEMENT
Premier and Minister for Trade
The Honourable Peter Beattie
Deputy Premier, Treasurer and Minister for Infrastructure
The Honourable Anna Bligh
STATE’S FUTURE GROWTH FUND GETS A $1.3B KICK
Queensland’s clean coal technology research, water infrastructure and regional infrastructure projects are this morning $1.3 billion better off, said Premier Peter Beattie and Deputy Premier and Treasurer Anna Bligh.
They announced agreements have been reached with Origin Energy on the sale of the Sun Retail electricity retailing business [$1.202 billion] and with AGL for the Sun Gas energy retailing business [$75 million].
“As was legislated by the Government in May every dollar of these sales will be for the Future Fund. This is about investing our gains for Queensland’s long-term benefit,” they said.
“A very competitive sale process has delivered an excellent result for the State,” Mr Beattie said.
“This is a great opportunity for both Origin Energy and AGL to build their presence in Queensland,” he said.
“We congratulate them on their successful bids and their investment decisions.”
The sale announcements represent a significant milestone for the Queensland Government’s energy sales process which was announced in April 2006.
Today’s sale follows last month’s $535 million sale of the State-owned Allgas distribution business to Australian Pipeline Trust.
“These sales are about building a stronger economy for all and by also delivering benefits for consumers too,” Mr Beattie said.
“With the market opening up in July 2007 the Government realised the best interests of Queenslanders lay in selling our retail activities.”
The Deputy Premier and Treasurer Ms Bligh said the State has received a full price for the businesses.
“The prices compare favourably with previous retail energy asset sales in Australia,” Ms Bligh said.
“This is also a good outcome for them and they both obviously recognise the tremendous growth opportunities in South East Queensland,” she said.
“This is a great boost for the Queensland Future Growth Fund and our priorities of water infrastructure, clean coal technology and infrastructure projects like ports, rail and energy.”
Formal sale completion is scheduled for February 2007 with a transition process to begin immediately.
Origin is a major Australasian energy company involved in the competitive segments of the energy industry including gas and oil exploration and production, energy retailing, electricity generation and network management.
It provides natural gas, LPG and electricity to more than two million homes and businesses throughout Australia, New Zealand and the Pacific region. Locally, it has a major natural gas presence supplying homes north of the Brisbane River.
AGL is one of Australia’s leading energy providers drawing on more than 169 years of experience. Supplying more than 3.6 million customer accounts with electricity, gas and renewable energy, AGL has a proven commitment to delivering quality service to customers and supporting local communities. It is also one of the largest renewable energy producers in Australia.
Minister for Mines and Energy Geoff Wilson said the sale is another step in the march towards full retail competition (FRC) which begins on 1 July 2007.
“The Government has been working hard on developing market operating arrangements that will provide real competition,” Mr Wilson said.
“The successful bidders have taken a great opportunity to increase their investment in Queensland,” he said.
“They will no doubt face stiff competition next year from other energy retailers who have indicated to us their intense interest in this market.”
Sun Retail is the major part of the former Energex retail operations that were restructured as part of the Government’s energy sale process.
Based on the expected customer numbers at the time of sale, the business comprised some 833,000 domestic and light commercial electricity customers and hot water customers, approximately 7,500 commercial and industrial sites and some 55,000 LPG customers. Sun Retail domestic electricity customers are located in Brisbane’s southern and western suburbs, Ipswich and the Gold Coast.
Sun Gas Retail was separated out of the former natural gas retailing business of Energex retail as part of the current sale process. It comprises 70,000 industrial, commercial and residential natural gas customers in Queensland and northern New South Wales. In addition, Sun Gas Retail supplies natural gas to approximately 140 commercial and industrial customers in Victoria.
Ms Bligh said it was important to the Government that staff were treated properly as part of this sale process.
The sale agreement protects the current Enterprise Bargaining Agreement (EBA) until its expiry in mid-2008. Contract staff will have the protection of their contract.
Sun Retail staff employed under the EBA also have the option of reverting back to Energex Limited six months following the sale. EBA staff wanting to stay on with the new owner of Sun Retail will be paid an incentive to do so.
Mr Wilson said the sales in no way affect the running of the State’s energy network.
“Energex will continue to run the poles and wires business and Energex remains under Government ownership,” said Mr Wilson.
The sale of Sun Retail will be followed by a final sale package with Powerdirect Australia, including the former commercial and industrial retail business of Ergon and some 390,000 former Energex retail customers.
This package will be very attractive to other energy companies seeking to enter the Queensland market and will boost competition when the market opens.
The energy sales process is being coordinated by Queensland Treasury in conjunction with lead advisers Rothschild Australia.
MEDIA CONTACTS: Premier’s Office – 3224 4500
Deputy Premier’s Office – 3224 4600
They announced agreements have been reached with Origin Energy on the sale of the Sun Retail electricity retailing business [$1.202 billion] and with AGL for the Sun Gas energy retailing business [$75 million].
“As was legislated by the Government in May every dollar of these sales will be for the Future Fund. This is about investing our gains for Queensland’s long-term benefit,” they said.
“A very competitive sale process has delivered an excellent result for the State,” Mr Beattie said.
“This is a great opportunity for both Origin Energy and AGL to build their presence in Queensland,” he said.
“We congratulate them on their successful bids and their investment decisions.”
The sale announcements represent a significant milestone for the Queensland Government’s energy sales process which was announced in April 2006.
Today’s sale follows last month’s $535 million sale of the State-owned Allgas distribution business to Australian Pipeline Trust.
“These sales are about building a stronger economy for all and by also delivering benefits for consumers too,” Mr Beattie said.
“With the market opening up in July 2007 the Government realised the best interests of Queenslanders lay in selling our retail activities.”
The Deputy Premier and Treasurer Ms Bligh said the State has received a full price for the businesses.
“The prices compare favourably with previous retail energy asset sales in Australia,” Ms Bligh said.
“This is also a good outcome for them and they both obviously recognise the tremendous growth opportunities in South East Queensland,” she said.
“This is a great boost for the Queensland Future Growth Fund and our priorities of water infrastructure, clean coal technology and infrastructure projects like ports, rail and energy.”
Formal sale completion is scheduled for February 2007 with a transition process to begin immediately.
Origin is a major Australasian energy company involved in the competitive segments of the energy industry including gas and oil exploration and production, energy retailing, electricity generation and network management.
It provides natural gas, LPG and electricity to more than two million homes and businesses throughout Australia, New Zealand and the Pacific region. Locally, it has a major natural gas presence supplying homes north of the Brisbane River.
AGL is one of Australia’s leading energy providers drawing on more than 169 years of experience. Supplying more than 3.6 million customer accounts with electricity, gas and renewable energy, AGL has a proven commitment to delivering quality service to customers and supporting local communities. It is also one of the largest renewable energy producers in Australia.
Minister for Mines and Energy Geoff Wilson said the sale is another step in the march towards full retail competition (FRC) which begins on 1 July 2007.
“The Government has been working hard on developing market operating arrangements that will provide real competition,” Mr Wilson said.
“The successful bidders have taken a great opportunity to increase their investment in Queensland,” he said.
“They will no doubt face stiff competition next year from other energy retailers who have indicated to us their intense interest in this market.”
Sun Retail is the major part of the former Energex retail operations that were restructured as part of the Government’s energy sale process.
Based on the expected customer numbers at the time of sale, the business comprised some 833,000 domestic and light commercial electricity customers and hot water customers, approximately 7,500 commercial and industrial sites and some 55,000 LPG customers. Sun Retail domestic electricity customers are located in Brisbane’s southern and western suburbs, Ipswich and the Gold Coast.
Sun Gas Retail was separated out of the former natural gas retailing business of Energex retail as part of the current sale process. It comprises 70,000 industrial, commercial and residential natural gas customers in Queensland and northern New South Wales. In addition, Sun Gas Retail supplies natural gas to approximately 140 commercial and industrial customers in Victoria.
Ms Bligh said it was important to the Government that staff were treated properly as part of this sale process.
The sale agreement protects the current Enterprise Bargaining Agreement (EBA) until its expiry in mid-2008. Contract staff will have the protection of their contract.
Sun Retail staff employed under the EBA also have the option of reverting back to Energex Limited six months following the sale. EBA staff wanting to stay on with the new owner of Sun Retail will be paid an incentive to do so.
Mr Wilson said the sales in no way affect the running of the State’s energy network.
“Energex will continue to run the poles and wires business and Energex remains under Government ownership,” said Mr Wilson.
The sale of Sun Retail will be followed by a final sale package with Powerdirect Australia, including the former commercial and industrial retail business of Ergon and some 390,000 former Energex retail customers.
This package will be very attractive to other energy companies seeking to enter the Queensland market and will boost competition when the market opens.
The energy sales process is being coordinated by Queensland Treasury in conjunction with lead advisers Rothschild Australia.
MEDIA CONTACTS: Premier’s Office – 3224 4500
Deputy Premier’s Office – 3224 4600