Austrian suppliers Steweag and Steg have agreed to transfer their hydro plants into Austrian Hydro Power (AHP), the generating subsidiary of power utility, Verbund. The move follows an agreement between Energie Steiermark, the regional utility that controls Steweag, and Verbund, which already owns a 70% stake in Steg.

The deal marks another stage in the gradual consolidation of Austria’s power market, where hydro is the backbone of Verbund’s generating capacity. In a subsequent move, to be finalised by the summer, Steweag and Steg will merge their operations.

German power giant Eon has also expressed an interest in AHP. A stake in the company would win Eon access to the Austrian market.