Shareholder review of Queensland Government owned corporation generators
Shareholder Review of Queensland Government Owned Corporation Generators - November 2010
In the 2008-09 Major Economic Statement Mid-Year Fiscal and Economic Review the Queensland Government announced that it would:
“…undertake a shareholder review of the structure and preparedness of the Government owned corporation (GOC) generators to meet the new challenges facing these businesses, particularly in respect of the impending Carbon Pollution Reduction Scheme and competition from large vertically integrated retailers.”
This shareholder review commenced in February 2009 and was undertaken by Queensland Treasury, with the assistance of expert advice from the Department of Employment, Economic Development and Innovation (DEEDI), the Department of the Premier and Cabinet (DPC), Queensland Treasury Corporation (QTC), the Government owned corporation generators (Gencos) and other market participants.
Queensland’s electricity generation requirements are supplied by both the public and private sectors. Through its role as owner of three electricity generators – CS Energy Limited (CS Energy), Stanwell Corporation Limited (Stanwell) and Tarong Energy Corporation Limited (Tarong) – the Government plays an active role in the Queensland generation sector.
This review examines the changing market environment and the risks to Government of maintaining its existing three Genco model. Under the current environment, the three Genco structure does not appear sustainable into the future. The Government must consider how to best manage its portfolio of generation assets to ensure value for money for all Queenslanders. Developing a model which secures the viability of the generation assets has been a key consideration for the review.
Generator review report (PDF 1,015 K)Last reviewed 13 September 2011
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