ECNZ Power Company Purchases To Be Allocated To New SOEsECNZ Shareholding Minister
Retail power companies purchased by ECNZ before the planned split of ECNZ on April 1 next year will be allocated amongst the three new SOEs.
Shareholding Ministers Bill Birch and Tony Ryall said today that any ECNZ purchases of retail businesses made between the period from 1 December this year to 1 April next year will be allocated as follows:
Waikato SOE -
Mercury Energy. ECNZ announced its purchase of Mercury yesterday.
any further North Island acquisitions. This includes
ECNZ's purchase of Wairarapa Electricity also announced yesterday.
South Island SOE
any further South Island acquisitions by ECNZ.
The South Island SOE has previously been allocated ECNZ's purchase of Northpower, ScanPower, Waitaki Electricity and CHB Holdings.
The Ministers said the decision to allocate ECNZ's retail purchases amongst the three SOEs is a sensible way to ensure all the new SOEs have an opportunity to participate in retail electricity as well as generation.
The Ministers said they wanted to ensure the relevant Interim Development Group (IDG) is consulted about the purchase of any energy business by ECNZ.
The Ministers were informed by the Electricity Reform Transition Unit (ERTU), the Government's advisor on the split, that the allocation of ECNZ's retail purchases amongst the planned three new SOEs will contribute to a more competitive electricity market.
Earlier this week ERTU reported to the Government on the processes and expected outcomes of a three-way ECNZ split. The Government is expected to decide on whether to proceed with the split and the foundation of the three new SOEs on December 15.