Simply Energy deal offers alternative supply

Press Release

Simply Energy deal offers alternative supply option

Wellington, 21 May 2009 – Simply Energy has signed a three-year agreement with EDC Ltd to sell generation from EDC’s Silverstream landfill gas plant direct to end users, bypassing traditional generator-retailers.

Under the agreement, EDC Ltd, an independent generator and energy services company, will utilise Simply Energy's wholesale market infrastructure to sell the 2MW of generation from Silverstream to their end customers.

Mike Drummond, General Manager of EDC Ltd, says the agreement is a winner for both companies.

"It means we can concentrate on selling electricity into our extensive customer base and running our generators, while Simply Energy manages all the wholesale market activities on our behalf on a transparent fee-for-service basis.”

Stephen Peterson, Managing Director of Simply Energy, says the agreement enables both parties to focus on their relative business strengths.

"EDC has picked the wholesale market services they need from Simply Energy to complement their existing business operation.

“At a time when Genesis Energy has announced it is withdrawing from the large user (time-of-use) electricity market, direct sales from independent generators to end users represents a real alternative supply option,” says Peterson.

The latest agreement takes the number of independent generation assets contracting with Simply Energy for generation and retail services to seven, increasing the energy under management by the company to a further 25GWh a year.

ENDS

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