April 24, 2014
ERM Power (ASX: EPW) today announced it had signed a three year electricity sales
contract with the New South Wales (NSW) Government and extended a four year contract
with the Australian Government by 12 months.
Managing Director and CEO Philip St Baker said the NSW Government contract was worth
about $900 million over three years, making it the largest contract signed by ERM Power’s
electricity sales business, which trades as ERM Business Energy.
He said the NSW contract starting in July 2015 covered large sites1
in NSW including major
government agencies such as NSW Health, Department of Education and Communities,
Department of Attorney General and Justice.
“Coupled with our contract to supply 10,000-plus small sites in NSW, winning the contract for
the large sites means we are now one of the largest electricity suppliers to the NSW
Government. The contract was signed at competitive rates and delivered a comprehensive
package of risk management, billing and reporting services,” Mr St Baker said.
He said the 12 month extension of the Commonwealth (Australian) Government contract
from 1 July 2015 was worth about $100 million and continued to cover over 80 government
agencies including Defence (ACT & NSW).
The share price on the ASX rose by 5.15% following the announcement.