EnergyAustralia managing director Richard McIndoe said the acquisition of the two power stations strengthens its position as one of Australia’s largest integrated energy business.
With the purchase of the two power stations, EnergyAustralia would be able to operate the plants more flexibly to meet customer needs, while relieving the company of high fixed costs currently incurred by it under the Delta Western GenTrader Agreements (GTA’s), which it signed with Delta Electricity in 2011.
"The GenTrader Agreements gave EnergyAustralia the right to trade the output from the Mt Piper and Wallerawang power stations, necessary at that time to maintain a balanced market position with the related acquisition of a significant customer base," McIndoe added.
"We will be released from high cost fixed contract commitments we currently incur under the GTAs and will gain unrestricted access to the full 2400MW capacity of the plants."
As per the agreement, EnergyAustralia will pay Delta Electricity A$160m, which will be funded at completion by existing financing facilities.
