Verve Energy Welcomes Government Announcement

Verve Energy welcomes the State Government's announcement today about electricity tariffs and special payments, which will be effective from 1 July 2009.

Managing Director Shirley In’t Veld said: “The Government initiatives confirm a sustainable future for Verve Energy. We can improve cash flows, move into a profitable position and invest in new more efficient and less carbon intensive plant.

“Verve Energy’s losses will continue until the combined tariffs and special payments are implemented. Thereafter we expect to see increases in our revenue and anticipate breaking even after the first year before moving into profitability.

“The impact on Verve Energy and its people will be very positive,” Ms In’t Veld said

“By generating stronger cash flow and profit commensurate with industry norms, Verve Energy will be able to reduce debt and invest in new efficient and environmentally friendly plant to replace old inefficient plant as it is due for retirement. This will enable Verve Energy to improve its reliability, its costs of generation and continue to be competitive in the developing energy market.

“For our employees the government’s announcement is great news as it sends an unequivocal message that Verve Energy has a long term, viable future.”

CONTACT REFERENCE: PETER WINNER 9424 1977

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