Australian power merger causing stir

The New South Wales government in Australia went into the election last March planning to merge the three existing electricity distributors into two, and now plans have progressed further.

Speculation is focused on a merger of Ausgrid (the former EnergyAustralia) and Endeavour Energy (formerly Integral Energy), which would create a single entity to service Sydney, Newcastle and Wollongong. The rest of the state would be handled by Essential Energy (formerly Country Energy).

The merger is one measure intended to reduce the political pain from rising electricity prices on household budgets.

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