Energy Queensland: Energex, Ergon merger unveiled at Townsville headquarters
State-owned power companies Ergon and Energex will become Energy Queensland when they merge at the end of the month.
Queensland Treasurer Curtis Pitt said the company would be based at Townsville in north Queensland.
Mr Pitt said the merged companies would be more efficient and insisted there would not be any forced redundancies due to the merger.
"We expect to see savings over the next five years upwards of $680 million," Mr Pitt said.
"This is money that is going to be important because it will help ensure we are running the business well, to make sure it is efficient."
Mr Pitt said the merged entity would save money in administration, management and by having one set of corporate costs.
"We are creating a more efficient business and adopting industry best practice," Mr Pitt said.
"The available funds can be re-invested into better services for all Queenslanders, while retaining public ownership of the state's electricity assets.
"Rather than sell these assets to the private sector and watch power prices soar, the Palaszczuk Government is delivering on its election commitment to reduce costs and make these businesses work better for Queenslanders."
The Government said it would spend about $500 million subsidising the cost of electricity in regional Queensland for 700,000 customers.
Regional electricity customers will pay a similar price to people in south-east Queensland.
Bad day for sparkies: Opposition
But shadow treasurer Scott Emerson said the LNP did not support the merger.
He said Energy Queensland would compete against sparkies for day to day electrical work.
"The creation of this company will unfairly hurt Queensland's independent electrical contractors," Mr Emerson said.
"Mr Pitt has again shown he's prepared to sell out Queensland's 10,000 privately-owned electrical contractors for union bosses at the Electrical Trades Union."
Mr Emerson also said implementing the merger would cost the Government about $170 million.
Source: ABC News