The DirectLink purchase brings the company’s total spending spree on acquisitions for the year to $1.3 billion.

APT managing director Mick McCormack yesterday said the company had purchased DirectLink, the smaller of the two interconnectors links between the NSW and Queensland power grids.

Interconnectors enable swapping of electricity between market regions. They are becoming increasingly important in the performance of the national electricity grid, which links all states except Western Australia and the Northern Territory.

“DirectLink is a low risk asset, with technology well understood by APT and regulated revenues approved for a 10-year period, providing revenue certainly until 2015,” McCormack said.

McCormack said DirectLink would provide $12 million in revenue (on a full-year basis) in 2007 with revenue escalating until 2015 under the current regulated tariff regime.

“The acquisition of DirectLink enhances our presence in electricity transmission and provides a real opportunity for APT to consider purchasing similar assets including greenfields projects based on our core strategic direction,” McCormack said.

He said the acquisition was part of the company’s plan to build a growing portfolio of transmission assets.

The next move could be buying Basslink, whose owner UK group National Grid is planning on selling. McCormack said APT had not yet been approached by National Grid but Basslink would be a natural fit with the company’s strategy and assets.

The $780 million transmission line is the world's longest subsea electricity interconnector. It enables the export of up to 600MW of hydro-electricity into the National Electricity Market and the import of up to 480MW of coal-generated electricity into Tasmania. Basslink and has been criticised for far exceeding original cost estimates.

Throughout the year APT also purchased GasNet Australia for $450 million, the Murraylink electricity asset between South Australia and Victoria for $153 million and the Queensland gas distribution business Allgas for $521 million.

“The DirectLink technology is very similar to Murraylink, which has performed above expectations since we acquired it early this year,” McCormack said.

“As a result of the Murraylink acquisition, APT has the necessary skills to ensure a smooth transition of the ownership and operatorship of the DirectLink assets.”