Powerco sells contract businesses

Taranaki-based electricity and gas distributor Powerco said today it was to sell its energy contracting subsidiaries.

Tenix Alliance NZ Ltd -- a unit of Australia's Tenix Group -- is buying Powerco Energy Services Ltd and Powerco Energy Services Eastern Ltd, for an undisclosed sum.

The sale takes effect on November 1.

The energy contractors employ about 330 staff in Wellington, Masterton, Palmerston North, Wanganui, Hastings, Hawera, New Plymouth, Tauranga, Te Aroha, Thames and Whitianga.

They work for Powerco Ltd as well as publicly contestable electrical and gas contracts.

Powerco chief operating officer Richard Krogh said Powerco Energy Services would continue to provide electrical and gas-contracting services to Powerco following the sale.

Powerco is New Zealand's second largest electricity and gas distribution utility with around 400,000 customers.

It is 100 per cent owned by Sydney-based Babcock & Brown Infrastructure, formerly Prime Infrastructure.

- NZPA