ActewAGL loses govt contract - ABC Online

Updated January 17, 2013 08:17:22

ACT electricity provider ActewAGL has lost a major contract to supply electricity to its part-owner, the ACT Government.

The major contract was awarded to Queensland company ERM Power Retail, which began supplying energy to the government's major outlets on January 1.

It is believed the contract is worth about $16 million over two years.

ActewAGL did secure two other government contracts which are worth about $6 million.

Territory and Municipal Services Minister Shane Rattenbury says the decision was made by directorate representatives based on a tender process.

"I imagine ActewAGL are incredibly disappointed to lose this contract but it is a competitive process," he said.

"The decision to award the contract to ERM, I've been briefed by the officials, they offered the best value for money for the Territory and that's the basis on which they took their decision."

In a statement, ActewAGL acting chief executive officer John Knox says the company remains competitive in the ACT market, demonstrated by steady growth in customer numbers.

"We remain committed to our customers, to supporting our local community through our sponsorships program, delivering excellent customer service and helping our customers manage their energy costs," he said.

Mr Knox says ActewAGL will continue to be a sponsorship partner of the Canberra centenary events.

Topics: electricity-energy-and-utilities, states-and-territories, act, canberra-2600

First posted January 17, 2013 07:57:49