Queensland’s Government-owned electricity generators (Gencos) have commenced operating under their new structures.

 

As announced in November last year, the three Gencos – CS Energy Ltd, Stanwell Corporation Ltd and Tarong Energy Corporation Ltd – will now trade as two companies, with Tarong Energy becoming a wholly owned subsidiary of Stanwell Corporation.

 

Minister for Finance, Rachel Nolan, said the restructure was “about managing our generation assets to maximise their economic lives.”

 

“The Queensland Government has a well established policy of decreasing its proportion of electricity generated for the Queensland market to 50% and this will be achieved by private companies investing in generators.

 

“The restructure keeps our generators in public ownership and allows them to meet the challenges of both a competitive national electricity market and to transition in a future where climate change must be addressed.”

 

Ms Nolan said the restructure had been undertaken in close consultation with unions and the companies’ 1,500 employees.

 

“All award employees have been given a three-year job guarantee from one government-owned company to another,” Ms Nolan said.

 

“The previous three-generator structure was introduced in 1997. Since then we’ve seen private investment in Queensland, changing the sector. We need to keep up with these changes so we can be competitive with the rest of the market.”