Genesis applies to acquire Energy On Line

5 September 2002

Genesis applies to acquire Energy On Line

The Commerce Commission has received a clearance application from Genesis Power Limited (Genesis) to acquire the electricity customers and assets of Energy On Line Limited (EOL).

Genesis was formed following the Government’s split of the Electricity Corporation of New Zealand in 1999, and is one of three state-owned enterprises supplying energy and energy related services in New Zealand.

Genesis is involved in the generation, wholesale and retail of electricity through a combination of hydro and thermal generation. Genesis owns seven power stations through the North Island, including the Huntly Power Station, Tongariro Hydro Scheme, Waikaremoana Hydro Scheme, Hau Nui Wind Farm in the Wairarapa and a number of co-generation plants. The majority of Genesis’ retail customers are in the North Island.

EOL is an electricity retailer registered in May 1999 after the Electricity Industry Reform Act provided for a split to occur between electricity lines businesses and electricity supply businesses. Its customer base covers the North Island from Taupo north, including the Bay of Plenty and Hawkes Bay. EOL’s customers are primarily small to medium sized businesses and residential customers.

In considering the application under the Commerce Act, the Commission’s role is to determine whether the merger has the effect of substantially lessening competition in any market.

A public version of the application will be available shortly on request from the Commerce Commission. Please contact Catherine Best, (04) 924 3654.

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