AGY-6995 | Electricity Retained Interest Corporation - Ausgrid

Full description

On 4 November 2016, the Electricity Retained Interest Corporations Act 2015 was constituted allowing part of the retained interest that was referrable to the State-Owned Corporation Ausgrid’s distribution system was constituted to have the corporate name “Electricity Retained Interest Corporation – Ausgrid”. (1)

On 1 December 2016 the NSW Government entered into a partnership with AustralianSuper and IFM Investors to operate Ausgrid under a 99 year long-term lease. The ownership structure of the partnership was IFM Investors and Australian Super (50.4%) and NSW Treasury (49.6%). (2) After the authorised transaction of Ausgrid’s electricity network assets to a private lease, the electricity network State-Owned Corporation, known as Ausgrid, was converted into a corporation constituted as a Ministerial Holding Corporation under the name of Alpha Distribution Ministerial Holding. The Corporation was the ‘landlord’ and provided effective stewardship and oversight of the AusGrid network. (3)

The Electricity Retained Interest Corporation – Ausgrid was established to hold the NSW Government’s retained interest in the Ausgrid network infrastructure assets for and on behalf of the State. In exercising the functions under the Electricity Retained Interest Corporation Act 2015, Ausgrid was not subject to the control or direction of the Government or a Minister on behalf of the Government. (4)

Ausgrid actively operated, maintained, repaired and built the Sydney, the Central Coast and the Hunter Valley electricity network. (5)

Endnotes
1. NSW Government Gazette No.88, 4 November 2016, p.2927.
2. NSW Treasury website, Post Transcation Management, https://www.treasury.nsw.gov.au/information-public-entities/government-businesses/post-transaction-management (accessed 11 January 2023).
3. NSW Government Gazette No.103, 1 December 2016, p.3367.
4. NSW Government Gazette No.111, 11 December 2015, p.4050.
5. Ausgrid website, Who we are, https://www.ausgrid.com.au/About-Us/Who-we-are (accessed 11 January 2023).