With rumours that TXU Corp is looking to offload Citipower, the sale of Pulse Energy would mean ownership of about two thirds of the Victorian retail energy distribution market in now not certain.
The four partners in Pulse Energy are United Energy (25%), Shell Australia (40%), Woodside Energy (10%) and Energy Partnership (25%) have appointed an investment banker to conduct a strategic review of Victoria's second largest gas and electricity retailer.
Pulse Energy is not the only headache for United Energy who have seen their share price fall over 46% during the past 19 months. The company is reviewing the future of its telco unit, Uecomm, as well as considering the possible sale of its back-office service business, Utili-Mode. This week United announced it was rationalising its loss making energy merchant and risk management business, EdgeCap.
Many in the market predict another tough year for the energy distribution industry after the Victorian Government last December granted a retail price increase of about 5% despite wholesale price rises of as much as 60% over the past 18 months.
