Chamber argues for new power retailers
SUPERMARKET Coles is likely to find itself in second place to archrival Woolworths when parent company Wesfarmers spins it off as a separate ASXlisted company. Analysts from investment bank UBS say Coles will face higher capital expenditure and costs as a stand- alone business and this will weigh on the supermarket chain’s earnings. Shares in Wesfarmers rallied on Friday after the Perth conglomerate announced its plan to spin off Coles. Wesfarmers wants to retain as much as 20 per cent of the new publicly listed Coles, which analysts suggest would be worth about $ 18 billion, while keeping Bunnings, Kmart, Target, Officeworks and its industrial businesses. UBS says a separately listed Coles should trade at a roughly 10 per cent discount to Woolworths. PRIVATE health insurer NIB is sitting on $ 2.5 million in unclaimed dividends and will transfer the funds to its charitable foundation if the owners do not show.
More than 9000 shareholders are owed payments at an average of $ 275, with one western NSW shareholder owed $ 14,600.
Funds unclaimed for more than six years are moved to the NSW Office of State Revenue.
But NIB’s shareholders last year approved a change to its constitution to instead allow the transfer of unclaimed dividends to the insurer’s notfor- profit charitable trust.
Managing director and chief executive Mark Fitzgibbon said the foundation helped charitable organisations.
Shareholders have until August 31 to claim dividends. A TOWNSVILLE business group has called for competition in electricity retailing to help reduce a widening gap in pricing between metropolitan and regional areas.
Townsville Chamber of Commerce board member Michael Kopittke said they were concerned about differences in pricing between northern and southern centres and the impact high electricity prices were having on the profitability of businesses.
A recent survey by the Queensland Electricity Users Network found nearly 50 per cent of Queensland’s businesses were experiencing moderate to severe difficulties paying their power bills.
Mr Kopittke said the chamber would raise its concerns at a workshop convened by the Queensland Competition Authority in Townsville today.
“We’ll be raising our concern about the differences in pricing and the effect it is having on businesses,” Mr Kopittke said.
“We believe this needs competition.” region
Alinta Energy, in a joint venture with state- owned generator CS Energy, is offering discounts of 28 per cent to more than 100,000 southeast Queensland customers worth $ 400, while 7000 Ergon customers are being offered $ 75 discounts by signing up to Easy Pay Reward payments.
Also, the Townsville Bulletin highlighted a recent case of a ten pin bowling alley owner, Noel Ambler, paying a 20 per cent higher rate for electricity with Ergon in Townsville than with AGL in Bundaberg.
It is understood the differ- ence in this case is due to lower transmission costs because of Bundaberg’s proximity to major coal- fired generators.
Mr Kopittke said it was important to raise these issues with the authority regulating electricity prices in regional Queensland.
“I would urge people in Townsville to attend this workshop to highlight the issues we are having,” Mr Kopittke said.
The QCA requires people to register to attend its workshop.
To register go to: www. qca. org. au/ Workshops