NGC settles exit from electricity retailing

By Phil Boeyen, ShareChat Business News Editor

Thursday 2nd August 2001

Natural Gas Corporation (NZSE: NCH) can close the book on its disastrous foray into power retailing after concluding the sale of its North Island customers to state-owned Genesis.

NGC announced the sale a week ago and says settlement of the sale agreement finalises its withdrawal from the retail electricity market.

The company has still not revealed the sale price for its North Island customer base which numbers some 290,000 consumers.

MD, John Barton, says the agreement for NGC to provide transitional call centre, billing and credit services for these customers over the next several months has also been finalised.

The company continues to be involved in the electricity market through its generation operations and has kept a natural gas customer base of around 100,000 industrial, commercial and residential gas users throughout the North Island.

It has also retained gas infrastructure and processing operations and its LPG business.

NGC's full-year results to the end of June are due soon but it has already forecast an after tax loss of up to $310 million.

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