Ann: Delorean Corporation Energy Retail Division Update, page-20

My perhaps incorrect understanding about the retail division is that it's a smokescreen. They're supposedly a gentailer (I think they call it?). Yet essentially they're a re-saler of normal, garden variety electricity made from fossil fuels. I remember when Telstra, Optus and Vodafone opened the telecommunications market. Dozens of previously unheard of companies bought a million minutes of airtime on the three major networks, at a hefty bulk discount, then re-sold them; keeping the difference between what they paid Telstra and what they billed their customers. I was with Dodo, then TPG. No problem. Cheap and reliable.

DEL doesn't generate its own electricity, except perhaps through RichGro. Yet we're supposedly the #5 electricity retail company in WA. My belief is we've just been buying it on the spot market and reselling it. Nothing wrong with that. And hopefully one day we are selling electricity from anaerobic digestion plants. But until now the presentations saying how we plan, build, generate and sell our electricity have, in my opinion, been a bit of a stretch. The whole thing *looked* like a key part of our overall business but I guess it was essentially a marketing division that sold regular electricity with pretty pictures, a cool slogan, and special offers. I've never been able to actually find any information of their retail offers through Google.

This is hardly a material transaction. Although I suspect in the long run it won't make a lot of difference if/when the plant builds happen and we have the actual green gas that can be offered to customers.