United applies for gas network

By Richard Braddell

WELLINGTON - New Zealand's largest electricity lines company, United Networks, has applied for Commerce Commission clearance to buy the North Island gas distribution network up for sale by Orion.

The assets, once part of the Enerco business, are 87 per cent owned by the Christchurch City Council and have been put up for sale in a tender to be finalised on March 31.

They have a book value of $270 million, but are expected to sell for considerably more given their unique nature and expected keen demand.

United last week confirmed it would be a keen bidder for the network which services much of Auckland and Wellington as well as Manawatu, Horowhenua and Hawkes Bay.

Although United's business is now confined to electricity lines, its 79 per cent controlling shareholder, US energy giant UtiliCorp, services more gas customers than electricity in its global business activities.

The two companies' electricity and gas networks have a 50 per cent overlap in the Auckland and Wellington service areas.