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Contact Energy has put its gas and electricity metering business up for sale, with talk it could fetch as much as $100 million.
"We are looking at the possibility of selling that part of the business," a Contact spokesman confirmed to the Business Herald yesterday.
"We are questioning whether it is a core part of our business and we are talking to some people in the market to gauge the level of interest in it."
The spokesman declined to say how many meters Contact had, but it is understood the number is around 200,000.
One analyst said the metering business could sell for up to $100 million, depending on whether the package included extras such as load control and relays, and depending on the mix of electricity and more valuable gas meters.
Electricity and gas meters are sought-after because they provide ongoing revenue from the metering charge. More-modern meters can also earn income by providing data about electricity and gas usage and by providing extra services, such as directly controlling household whiteware.
The Contact spokesman declined to say who the company was in talks with, but state-owned generator Meridian is understood to be interested in the business. Vector, which also has electricity and gas metering, could also be interested.
Meridian is in the process of upgrading its own metering business to "smart metering".
"This technology is potentially of huge value to customers," the company said in its annual report. "The ability to track and control energy use in real time can revolutionise choice and allow consumers to manage their energy spend."
The company aims to introduce the technology to 112,000 households over the next two years. Shares in Contact closed up 1c yesterday at $7.75.
