Structural Changes to Queensland GOC Energy Companies
On the 10th of March the Honourable Rachel Nolan, Minister for Finance and the Arts released the revised and reallocated corporate structure of government owned electricity generator companies.
These changes follow a Government review of generating companies and extensive consultation with the current generation companies, unions, competition regulators and employees. Changes include;
· Three current companies; CS Energy, Stanwell Corporation and Tarong Energy Corporation will be merged to form two new companies.
· Ownership of the Glen Wilga coal resource in the Surat Basin, currently held by Tarong Energy, will be combined with the adjacent Kogan coal mine and the Kogan Creek Power Station.
Reallocation will begin from 1 July 2011 and meet the targets made last year for the Bligh Government’s commitment to maximise the economic life of Queensland’s electricity generation assets.
The reshuffle will be fulfilled by the reallocation of assets in accordance with the provisions of Section 161 of the Government Owned Corporations Act 1993. The two new generating companies will be kept in public ownership, allowing them to meet the challenges of both a competitive national electricity market; and to transition into a future where climate change must be addressed.
Minister Nolan emphasised that these changes will strengthen Queensland’s public entities for the future growth, employment, and economy of the state.
The reallocation of all other portfolio assets remained unchanged from the current structure announced on 25 November 2010
Consultation with relevant parties will continue throughout the implementation of the new structure.