Victoria, South Australia Asia-owner electricity distribution networks private owners earned more than forecast

First 17 of 17 paragraphs shown Cheung Kong Infrastructure with Hongkong Electric Holdings, combined, were the dominant electricity distribution firms, in South Australia and Victoria.
Underspending and overspending: South Australia network and most Victorian networks underspent against their forecast allowance. The Queensland networks recorded small but consistent overspends of up to 10 per cent from 2005-06. The Tasmanian network consistently overspent from 2003-04.
- Victoria's five distribution networks Powercor, SP AusNet, United Energy, CitiPower and Jemena are privately owned. The South Australian network (ETSA Utilities) is leased to private interests.
Returns of about 8 -12 per cent: Over the past seven years, the privately owned businesses in Victoria and South Australia tended to yield returns of about 8 -12 per cent.
Higher than regulatory forecasts of 7- 9 per cent: Returns for these businesses were consistently higher than regulatory forecasts of 7- 9 per cent.
Elsewhere, lower returns: The government owned distribution businesses in New South Wales, Queensland and Tasmania achieved returns ranging from 4 per cent to 10 per cent.
Ownership changes since privatisation: At June 2009 there were two principal network owners:
- Cheung Kong Infrastructure and Hongkong Electric Holdings have a 51 per cent stake in two Victorian networks (Powercor and CitiPower) and
- a 200-year lease of the South Australian distribution network (ETSA Utilities).
- The remaining 49 per cent in each network is held by Spark Infrastructure, a publicly listed infrastructure fund in which Cheung Kong Infrastructure has a direct interest.
- Singapore Power International owns a 51 per cent stake in SP AusNet, which owns Victorias SP AusNet network. Singapore Power International acquired a second Victorian network (Jemena) and part ownership of a third network (United Energy) from Alinta in 2007. It also owns a 50 per cent share in the ACT distribution network (ActewAGL).
- DUET Group has a majority interest in Victorias United Energy network The minority owner, Singapore Power International, operates the network.
- In some jurisdictions, there are ownership links between electricity distribution and other segments of the energy sector. In New South Wales, Tasmania and the ACT, common ownership occurs in electricity distribution and retailing, with ring-fencing arrangements for operational separation.
- Queensland privatised much of its energy retail sector in 2006-07, but Ergon Energy continues to jointly provide distribution and retail services.
- In Western Australia, Western Power owns both electricity transmission and distribution assets. Horizon Power in Western Australia and Power and Water in the Northern Territory are vertically integrated electricity businesses.

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