Published Tuesday, 15 May, 2007 at 03:46 PM
JOINT STATEMENT
Premier and Minister for Trade
The Honourable Peter Beattie
Deputy Premier, Treasurer and Minister for Infrastructure
The Honourable Anna Bligh
Minister for Mines and Energy
The Honourable Geoff Wilson
SMART STATE MOVE ON ENERGY ASSETS
Premier Peter Beattie announced today that a number of electricity and gas interests managed by energy provider Enertrade would be transferred to other government-owned corporations.
Mr Beattie said the move was foreshadowed in the State Government’s response to a review of its energy assets conducted by Boston Consulting Group last year.
He said Enertrade would cease to exist as a separate government owned corporation by September.
“Enertrade has not been a profitable energy provider for some time,” Mr Beattie said.
“They have done a good job handling a set of contracts that were entered into over 10 years ago - primarily by the previous Borbidge Government.
“They were struck at prices that no longer reflect the new and competitive electricity market.
“As a result many of these old, long term contracts are not profitable and this has resulted in Enertrade being required to operate as a loss making enterprise.
“The strategic reallocation of Enertrade’s key energy contracts and assets is aimed at strengthening the energy businesses through integration of the assets and greater economies of scale.”
Mr Beattie said the latest move was also designed to protect the interests of Enertrade staff.
“The government-owned corporations that will take over Enertrade assets will also have access to their talented and specialist staff. They’ll be encouraged to transfer, bringing their skills and know-how with them,” he said.
“Workers who were facing a bleak future, now have brighter prospects.”
The Deputy Premier and Treasurer, Ms Anna Bligh said the gas business run by Enertrade would continue under the flagship of the Stanwell Corporation.
Ms Bligh said it would be business as usual during the transition period.
She also stated that the Oakey Power Station Power Purchase Agreement would be re-assigned following an open tender process. This power station is located close to the south-east corner and reliable gas sources. The contract is therefore likely to attract wide market interest. No staff will be involved in this transfer.
The Minister for Mines and Energy, Mr Geoff Wilson, said there will be no loss of conditions or entitlements and no forced redundancies for Enertrade’s award/EBA staff.
Consultants KPMG have been appointed as the government’s advisors to work with Enertrade on the implementation of the changes which are expected to take effect by the end of September.
15 May, 2007
Further inquiries: Premier’s Office: 3224 4500
Mr Beattie said the move was foreshadowed in the State Government’s response to a review of its energy assets conducted by Boston Consulting Group last year.
He said Enertrade would cease to exist as a separate government owned corporation by September.
“Enertrade has not been a profitable energy provider for some time,” Mr Beattie said.
“They have done a good job handling a set of contracts that were entered into over 10 years ago - primarily by the previous Borbidge Government.
“They were struck at prices that no longer reflect the new and competitive electricity market.
“As a result many of these old, long term contracts are not profitable and this has resulted in Enertrade being required to operate as a loss making enterprise.
“The strategic reallocation of Enertrade’s key energy contracts and assets is aimed at strengthening the energy businesses through integration of the assets and greater economies of scale.”
Mr Beattie said the latest move was also designed to protect the interests of Enertrade staff.
“The government-owned corporations that will take over Enertrade assets will also have access to their talented and specialist staff. They’ll be encouraged to transfer, bringing their skills and know-how with them,” he said.
“Workers who were facing a bleak future, now have brighter prospects.”
The Deputy Premier and Treasurer, Ms Anna Bligh said the gas business run by Enertrade would continue under the flagship of the Stanwell Corporation.
Ms Bligh said it would be business as usual during the transition period.
She also stated that the Oakey Power Station Power Purchase Agreement would be re-assigned following an open tender process. This power station is located close to the south-east corner and reliable gas sources. The contract is therefore likely to attract wide market interest. No staff will be involved in this transfer.
The Minister for Mines and Energy, Mr Geoff Wilson, said there will be no loss of conditions or entitlements and no forced redundancies for Enertrade’s award/EBA staff.
Consultants KPMG have been appointed as the government’s advisors to work with Enertrade on the implementation of the changes which are expected to take effect by the end of September.
15 May, 2007
Further inquiries: Premier’s Office: 3224 4500