At a joint press conference on Thursday, dominant Austrian power producer Verbund and regional utility Salzburg AG, announced further cooperation agreements headed up by the sale by Salzburg of a 50 per cent interest in distributor MyElectric Stromvertrieb to a Verbund subsidiary.
The distribution subsidiary, APC, is also partly owned by Salzburg and together a managing director will be appointed for MyElectric. In their statement they said, “With MyElectric, the two eco-friendly energy producers are now jointly offering clean energy generated from hydropower at competitive rates”.
Verbund also said the choice of the Salzburg-based MyElectric was a logical one, since Verbund and German power firm E.ON had decided to set up their European Hydro Power (EHP) joint-venture in Salzburg.
Once the joint venture is completed, EHP will become European’s second-biggest listed water-powered electricity generator.
The two companies intend to extend corporate links the joint sales venture Raiffeisen Ware Wasserkraft. The cooperation agreements also include a longer-term power purchase agreement, by which MyElectric and Salzburg AG has contracted to buy 80 per cent of their annual electricity requirements from Verbund.
“For Verbund, this is another step towards becoming a total power supplier,” Verbund board member Johann Sereinig said in a statement.
Verbund operates the super-regional high-voltage transmission grid in Austria and operates grid connections to neighbouring countries. It remains 51 per cent state-owned with the balance of shares having been in public ownership since 1988. Since the liberalization of the E.U. power market in 1999, Verbund has won an increasing number of foreign customers.