Alinta told the ASX yesterday it had been notified by Singapore Power's advisers that another party has been appointed as the preferred bidder for the assets currently being sold, ending Alinta's involvement in the process.

AGL and Santos had also indicated they were interested in the retail assets but fell by the wayside. It now appears that the preferred bidder is Hong Kong's biggest utility, China Light & Power (CLP).

State-run utility Singapore Power has owned Victorian transmission network, SPI Powernet since 2000. In 2004 it bought the Australian assets of US electricity supplier TXU Corp for $5.1 billion, making it one of Australia’s largest electricity and gas utilities companies.

Singapore Power agreed to sell the assets - which include an electricity, gas and retailing unit serving customers in two Australian states, and a power station - to allay anti-monopoly concerns.

Singapore Power plans to retain its gas and electricity networks as well as the SPI Powernet transmission business, but will sell off the SEAGas transmission pipeline between Victoria and South Australia, and the Torrens Island power station in Adelaide that it bought from TXU.

CLP already owns the 1450 megawatt coal-fired Yallourn Power station. Hong Kong reports say the company has been trying to expand it power generation portfolio and to add an energy retailing business in Australia to overcome its dependence on one power generating unit for its Australian revenue stream.

The deal will add 1.1 million Victorian gas and electricity customers to CLP’s portfolio.