In addition, under the GenTrader arrangements, a conditional $A198 million will be payable if certain payments are ruled to be tax deductible.
Origin Chairman Kevin McCann said “Following completion of the transaction, Origin will be Australia’s largest energy retailer with 4.6 million customer accounts and will have one of the country’s largest and most diverse generation portfolios with more than 5,800 MW of capacity, through either owned generation or contracted rights.”?
Combined, Integral Energy and Country Energy have more than 1.6 million electricity customer accounts, 33,000 natural gas customer accounts and 9,000 LPG customer accounts.
In the 2010 financial year, combined Integral Energy and Country Energy customers consumed 27 terawatt hours of electricity and 4.5 PJ of natural gas, with total revenues of $3.8 billion.
Retail prices have been set in New South Wales for the next three years by the regulator, the Independent Pricing and Regulatory Tribunal. As a result, this transaction will not have any effect on regulated tariffs that apply to mass market customers in the state.
Eraring Energy’s operations include the coal-fired Eraring Power Station (2,800 MW available capacity), located on the western shore of Lake Macquarie in New South Wales, and the 240 MW Shoalhaven hydropower scheme in the New South Wales Southern Highlands.
In addition, TRUenergy has also said it will acquire EnergyAustralia’s energy retailing business, the Delta Western GenTrader Bundle. This bundle comprises long-term offtake contracts to buy the output of the coal-fired power stations of Delta Electricity at Mount Piper and Wallerawang, and development sites at Marulan and Mount Piper – both of which have been proposed for developments as gas-fired power stations – for a total of $2,035 million.
The acquisition is expected to be completed in March 2011.
AGL Energy, who had also submitted bids for the assets but did not acquire any assets, said it will now pursue the alternative strategy of leveraging its market position and its operational platform to drive organic customer growth in New South Wales.
AGL said plans are well advanced for the construction of a new gas-fired power plant in New South Wales.