Smooth transition into new structure for Queensland Government Gencos
The transition from three to two Queensland Government-owned electricity generators (Gencos) has taken with a smooth start after they began operating under their new structure on Friday.
(Media-Newswire.com) - The transition from three to two Queensland Government-owned electricity generators ( Gencos ) has taken with a smooth start after they began operating under their new structure on Friday.
The main challenge for management on day one was caused by a rat eating through a communication cable at Swanbank, however the power stations remained online while the cable was repaired.
Finance Minister Rachel Nolan said the three companies CS Energy, Stanwell Corporation and Tarong Energy transitioned to 2 with Tarong Energy becoming a wholly-owned subsidiary of Stanwell Corporation on 1 July.
“We undertook a restructure of Queensland’s state-owned Gencos after a comprehensive review of state’s electricity sector by Queensland Treasury last year,” Ms Nolan said.
“By restructuring from three Gencos down to two, the state Government will save up to $60 million over the next four years.”
“In recent years the Government's share of the electricity generation market has fallen from over 80% in 2000 to approximately 58% this year.
“This is in-line with our target to reduce our share to 50% as private companies invest in generators.”
The boards of the two Gencos met for the first time under their new structure on Friday.
The CS Energy board is chaired by Denis Byrne, with members Karen Smith-Pomeroy, Tracy Dare, Sarah Israel, Mark Williamson, Greg Simcoe, Keith Barker and Jon Hubbard.
Stanwell Corporation’s board is chaired by Graham Carpenter, with members Graeme Crow, Russell Kempnich, Stephen Rochester, Kym Collins, Julie Leaver, Ann Fitzpatrick and the Honourable Rodney Welford.
Ms Nolan said the two new boards have an important job ahead in achieving necessary savings through the restructure. Ms Nolan also thanked the outgoing board members of CS Energy, Stanwell Corporation and Tarong Energy, in particular Mr Stephen Lonie, who had served as Chair on the CS Energy board since 1999.
“This restructure is about finding a better and more efficient way to do business,” Ms Nolan said.
“The previous three-generator structure was introduced in 1997 and since then we’ve seen private investment in Queensland, changing the sector.
“We need to keep up with these changes so we can be competitive with the rest of the market.
“These boards will need to manage the current challenging market conditions and the risk of carbon price uncertainty, which will negatively impact the value of the Genco’s generation assets.”
Two of South East Queensland’s key water entities Seqwater and WaterSecure were also merged on July 01.
Ms Nolan said that putting Seqwater and Water Secure under the one umbrella created a sustainable and more efficient business model that will bring benefits to the SEQ community, the organisation and its employees.
“As we announced in December last year the two authorities will now operate as Seqwater and hold responsibility for 24 dams, 47 weirs and 46 bulk water treatment plants across the region,” Ms Nolan said.
Media contact: Maggie Hill 3836 0552
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