Counties Power clients sold to Contact

WELLINGTON - Pukekohe-based electricity supplier Counties Power has agreed to sell its energy retailing business of nearly 30,000 customers to Contact Energy.

The sale is another in the rapid reorganisation of the electricity industry ordered by the Government, which required electricity retailers to choose between being lines network operators or energy retailers.

TrustPower also expanded its operations yesterday, buying the energy business of Otago Power - with 14,500 customers - and its Paerau hydro scheme.

The Counties Power sale will take effect from March 31 and the trust-owned company will continue to own its lines business.

Contact Energy said the deal took its electricity and gas retail customer base to about 450,000.

In another power industry development, Canadian-owned TransAlta has received Commerce Commission approval to buy up to 40 per cent of Contact Energy when it is privatised later this year. The Government is seeking expressions of interest from potential cornerstone shareholders.