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posted on:
December
14
2015

Qld energy genco merger scrapped

 

Source: AFR, 14 Dec 2015


The Palaszczuk government has backed down from its election commitment and will scrap plans to merge its two electricity generation companies, CS Energy and Stanwell Corporation.


With Treasurer Curtis Pitt to announce a $1.5 billion write-down in revenue from a slump in coal royalties and payroll tax in its mid-year budget update on Tuesday, the Palaszczuk government will also reveal its plans for a merger of its other state-owned power companies, to create savings of $680 million over the next five years.


But the merger of CS Energy and Stanwell Corporation will be dumped after serious concerns were raised by the Australian Competition and Consumer Commission about a lack of competition in the state's electricity generation sector. The move was foreshadowed by The Australian Financial Review in October.


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