New dawn for Qld energy market
Published Thursday, 01 February, 2007 at 03:13 PM
Deputy Premier, Treasurer and Minister for Infrastructure
The Honourable Anna Bligh
1 February 2007
Queensland’s energy market took another step forward today with the formal completion of the sale of both Sun Retail and Sun Gas from ENERGEX to Origin and AGL Energy respectively.
“I again would like to congratulate both Origin and AGL on these investments in the Queensland energy market and in Australia’s most dynamic economy” said Deputy Premier, Treasurer and Minister for Infrastructure Anna Bligh.
“Formal completion of these sales and the pending sale of Powerdirect Australia marks a key stage in the reform of the Queensland energy market,” said the Deputy Premier.
On 27 November 2006 the Government announced the sale of Sun Retail Pty Ltd, the former retailing arm of ENERGEX to Origin Energy for $1.202 billion. Sun Retail includes some 840,000 residential, commercial and industrial electricity customer accounts and 55,000 LPG customers.
Sun Gas Retail Pty Ltd was ENERGEX’s former natural gas retail business and was sold for $75 million to AGL Energy. It comprises 70,000 industrial, commercial and residential natural gas customers in Queensland and Northern New South Wales plus some 140 commercial and industrial customers in Victoria.
Sun Retail’s former customer base of 1.2 million was split prior to sale with approximately 390,000 residential and light commercial customers transferred to Powerdirect Australia, the Ergon Energy contestable retailing business. That sale is scheduled to be announced in mid-February and completed in early March.
Various business separation issues and financing steps had to be undertaken by the State and Origin and AGL before formal handover of the businesses occurred today 1 February 2007.
The energy sales have been designed to minimise disruption and confusion for customers.
*Rebates and pension discount arrangements will remain in place.
*Bill payment arrangements will not change.
*Rescue helicopter donations will still be collected.
*The Community Ambulance Cover levy will still be collected.
“From tomorrow (Friday), instead of the ENERGEX logo, many energy customers will begin to see either the Origin or AGL logo” said the Deputy Premier, “but that should be the extent of change at this point.”
Minister for Energy Geoff Wilson said the Queensland Government will continue to own the distribution network through Energex and Ergon and maintain the on-going investment in the poles and wires that deliver electricity to our homes.
“Importantly, electricity customers in south-east Queensland should still call ENERGEX distribution if their supply is lost (13 62 62) or if there is life threatening electricity emergency (13 19 62).
Mr Wilson said that on 1 July 2007 the residential and small business sector will become a competitive energy market through the introduction of Full Retail Competition (FRC) for both electricity and gas.
“To boost competition the State has restructured the retail sector and transformed it into a competitive market. That means better services and competitive prices for households and businesses.
“The new competition means that many Queenslanders will have a choice of who they get their energy from,” said Mr Wilson.
Ms Bligh said that combined with the $535 million from the sale of the Allgas gas distribution network, the $1.8 billion in proceeds received from the sales to date will be re-invested in the Queensland economy through the Queensland Future Growth Fund.
Investment will be in areas such as clean coal technology, water and other transport and energy infrastructure.
Deputy Premier’s Office: 3224 4379
Queensland’s energy market took another step forward today with the formal completion of the sale of both Sun Retail and Sun Gas from ENERGEX to Origin and AGL Energy respectively.
“I again would like to congratulate both Origin and AGL on these investments in the Queensland energy market and in Australia’s most dynamic economy” said Deputy Premier, Treasurer and Minister for Infrastructure Anna Bligh.
“Formal completion of these sales and the pending sale of Powerdirect Australia marks a key stage in the reform of the Queensland energy market,” said the Deputy Premier.
On 27 November 2006 the Government announced the sale of Sun Retail Pty Ltd, the former retailing arm of ENERGEX to Origin Energy for $1.202 billion. Sun Retail includes some 840,000 residential, commercial and industrial electricity customer accounts and 55,000 LPG customers.
Sun Gas Retail Pty Ltd was ENERGEX’s former natural gas retail business and was sold for $75 million to AGL Energy. It comprises 70,000 industrial, commercial and residential natural gas customers in Queensland and Northern New South Wales plus some 140 commercial and industrial customers in Victoria.
Sun Retail’s former customer base of 1.2 million was split prior to sale with approximately 390,000 residential and light commercial customers transferred to Powerdirect Australia, the Ergon Energy contestable retailing business. That sale is scheduled to be announced in mid-February and completed in early March.
Various business separation issues and financing steps had to be undertaken by the State and Origin and AGL before formal handover of the businesses occurred today 1 February 2007.
The energy sales have been designed to minimise disruption and confusion for customers.
*Rebates and pension discount arrangements will remain in place.
*Bill payment arrangements will not change.
*Rescue helicopter donations will still be collected.
*The Community Ambulance Cover levy will still be collected.
“From tomorrow (Friday), instead of the ENERGEX logo, many energy customers will begin to see either the Origin or AGL logo” said the Deputy Premier, “but that should be the extent of change at this point.”
Minister for Energy Geoff Wilson said the Queensland Government will continue to own the distribution network through Energex and Ergon and maintain the on-going investment in the poles and wires that deliver electricity to our homes.
“Importantly, electricity customers in south-east Queensland should still call ENERGEX distribution if their supply is lost (13 62 62) or if there is life threatening electricity emergency (13 19 62).
Mr Wilson said that on 1 July 2007 the residential and small business sector will become a competitive energy market through the introduction of Full Retail Competition (FRC) for both electricity and gas.
“To boost competition the State has restructured the retail sector and transformed it into a competitive market. That means better services and competitive prices for households and businesses.
“The new competition means that many Queenslanders will have a choice of who they get their energy from,” said Mr Wilson.
Ms Bligh said that combined with the $535 million from the sale of the Allgas gas distribution network, the $1.8 billion in proceeds received from the sales to date will be re-invested in the Queensland economy through the Queensland Future Growth Fund.
Investment will be in areas such as clean coal technology, water and other transport and energy infrastructure.
Deputy Premier’s Office: 3224 4379