1 / 13

Workshop with private sector

Merger of Synergy and Verve Energy. Workshop with private sector. Merger Implementation Group 16 July 2013. Background. Premier announced the merger of Synergy and Verve Energy on 10 April 2013 Integrated into single entity with two ring fenced business units for generation and retail

jamalia-erickson
Download Presentation

Workshop with private sector

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Merger of Synergy and Verve Energy Workshop with private sector Merger Implementation Group 16 July 2013

  2. Background • Premier announced the merger of Synergy and Verve Energy on 10 April 2013 • Integrated into single entity with two ring fenced business units for generation and retail • Merged entity to be called Synergy • Merger to happen by 1 January 2014 • Common board established by 1 July 2013

  3. Merger Implementation Group • Merger Implementation Group formed • Peter Oates (Chair) • David Hunt • Ray Challen • Role of the Merger Implementation Group • What is our role? • What is not our role?

  4. Merger objectives Stream 1: • To establish a new Synergy by 1 January 2014, consistent with the following objectives: • Cost savings • Sustaining private sector participation • Security and reliability of supply Stream 2: • Develop a position paper on the impact of the merger on the Wholesale Electricity Market

  5. Today’s outcomes • Establish common understanding of issues identified by private sector • Listen to private sector views on potential solutions and/or mitigants to these issues

  6. Stakeholders • Engaging with a wide range of stakeholders over the course of the merger Common board of the corporations Existing energy market participants Industry Retail customers Employees Unions WA government agencies ACCC ERA IMO

  7. Project governance Other stakeholders Minister for Energy Treasury Unions Industry Advisors Merger Implementation Group (Chair + 2 Members) Regulatory Bodies Counterparties Electricity Market Corporate Restructuring Other Legal Project Office (Project Director + 5 FTEs) Verve Steering Committee Chairman Common Board CEO (S), CEO (V) SSO Synergy Steering Committee Project Governance Project Communications Legal and Legislative Change Transaction Design Benefits Realisation Project Manager/s Verve Synergy Generation Corporate Shared Services Retail

  8. Process going forward • Merger related activities broadly categorised as: • Consultation • Legislation • Regulation • Integration of Synergy and Verve Energy • Timing • Engaging with the merger team

  9. Legislation vs. regulation • Two stages – legislation and regulations • Legislation • Will address the mechanics of the merger • Primarily consists of amendments to the Electricity Corporations Act 2005 • Drafting instructions are being finalised • Regulations • Any ring-fencing measures will be set out in the regulations, or Ministerial orders/directions made under the Act or regulations • The regulations are still being developed – stakeholder input is being sought in advance of detailed drafting

  10. Existing contracts will be honoured Subject to legislation Synergy and Verve Energy will merge into a single entity Parts of the merged entity will be ring-fenced Key elements of the merger

  11. Merger Contacts Peter Oates Email: Peter.Oates@dpc.wa.gov.au Mobile: 0414 690 341 Ray Challen Email: Ray.Challen@finance.wa.gov.au Mobile: 0408 321 262 Simon Middleton Email: Simon.Middleton@finance.wa.gov.au Mobile: 0409 581 482

  12. Questions

  13. Discussion topics • Ring fencing • Transfer pricing • Role of the private sector in the WEM

More Related