Snowy Hydro acquires Lumo Energy

Media release dated 12 September 2014

Snowy Hydro is poised to write a brand new chapter in its iconic history with its acquisition of Infratil's Australian Energy Market Assets, including the retailer Lumo, in a deal worth $605 million.

The purchase includes 163MW of peaking generation assets in South Australia and NSW, the company 'Direct Connect' (a one stop utility connection service) and Lumo's electricity and gas retailing business, which has more than 540,000 customers in Victoria, South Australia, NSW and Queensland.

Combined with the existing Red Energy business, Snowy Hydro's retail customer base will now total almost 1 million customers across four States, marking a major step towards realising the company's goal of becoming the fourth pillar in the National Electricity Market.

Chairman of Snowy Hydro, Mr Bruce Hogan AM said "Snowy Hydro has never shied away from value- accretive acquisitions that complement the existing portfolio and the highly successful organic growth strategy delivered by the partnership with Red Energy. Key to this outcome was acquiring the three separate components of the Infratil business. This, combined with our existing portfolio of generation assets of the Snowy Hydro Scheme and our Victorian Gas plant, will give Snowy Hydro the ability to deliver a superior total customer offering, underpinning Snowy Hydro's future as a stronger, larger, even more successful business".

Lumo, like Red Energy, has an enviable record in product innovation and customer service, which has seen both achieve strong growth over the last decade. Both companies rate very highly in customer satisfaction and have won multiple customer service awards.

Snowy Hydro CEO Paul Broad described the acquisition as a "win for consumers". He said "combined with Snowy Hydro's proud history, excellence in engineering, innovation and proven capability in the market, this acquisition is an ideal fit for Snowy Hydro."

Mr. Broad concluded "this deal is going to increase competition right across the east coast. Any customer in the eastern mainland States can now sign up for their energy supply with the Snowy Hydro group. Today marks a major milestone in the proud and successful Snowy Hydro story."

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