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James McCullough

November 12, 2006

THE queue of buyers for the bulk of Queensland’s retail electricity assets has been whittled down to a short list of just three amid speculation the Government will probably easily attain its stated price of more than $1 billion for the lot.
Final bids for the second leg of electricity privatisation – the sale of Sun Retail – close on November 20 and it is understood a short list of serious contenders has already emerged.

It is believed TRU energy, AGL and Origin are the three final committed bidders for the assets of the government-owned Sun Retail – most of the retail arm of Energex.

Deputy-Premier Anna Bligh has been careful when talk turns to the price, while confirming that the retail sale process is progressing well. Ms Bligh said that, following the Allgas sale for $535 million, including stamp duty, the sale was expected to bring more than $1 billion altogether.

Sun Retail has about 810,000 customers and Powerdirect has about 390,000 customers.

Analysts quote a widely ranging price of $500 to $900 per customer on the sale – meaning the Government would probably reap between $600 million and $1.08 billion for the retail sales on top of the Allgas deal.

Some analysts said the sale process had been badly run and bidders scantily informed. “They only put information about tariffs in it lately. These bidders are buying a pig in a poke,” one said.