REVITALISED #SEC BRILLIANT USE OF STATE POWER WITHOUT #ACCCThe...

REVITALISED #SEC BRILLIANT USE OF STATE POWER WITHOUT #ACCC

The business idea of resurrecting the old State Electricity Commission of #Victoria based on selling solar power is nothing short of BRILLIANT.

The business plan is brilliant for the Victorian #Government and the 49% of #shareholders who won't need to worry about the ACCC breathing down their necks but it won't be so good for current #utility providers who will now be on notice on a number of fronts. They stand to lose big customers and put a squeeze on their margins going forward. #AGL and #ORIGIN might be the largest losers as the NEW SEC begins business out of the following energy providers https://lnkd.in/gXQjfqdr.

The #CEOs and shareholders [including Mike Cannon-Brooks] of both AGL & Origin Energy must have been experiencing that sinking feeling ever since it was announced by Premier Daniel Andrews during the last state elections.

I can see huge profits from huge revenues being transferred from local, state, and federal government departments being instructed to move all their electricity accounts to the new Vic SEC ie about 30% of the business sector market in Victoria and possibly more from other states. The only sticking point might be the conditions of sale in the original sale agreement to the bidders during the sale process supervised by Treasurer Alan Stockdale who engineered his own brilliant sale of the Electricity companies during the #Kennett government era 1992-1999 which upon sale cleared their huge debt, started saving loan interest and paying 10% #GST of all utility sales revenues. That was brilliant too receiving an increasing return without owning the businesses.

#energy #solarpower #electricity #business #commercialaw
#AGL #ORIGIN ASX #smallbusiness #banks #banking #power
#competitionpolicy #monopoly #antitrust #superannuationfunds

Copied from LinkedIn with permission

What do readers say? What type of risk if any?