The Loy Yang Power station in the La Trobe Valley has been up for sale for three years with Australian energy companies AGL and Origin Energy the only remaining interested parties after the withdrawal of a Malaysian consortium earlier this year.

An Origin spokesman said the company had not made an official bid for Loy Yang but had held discussions with the ACCC about issues relating to its purchase by an electricity retailer.

The Energy Industries Minister Theo Theophanous says this has effectively blocked the sale.

"Unless the ACCC reverses its decision and has a rethink, then there's the potential for there to be no sale of Loy Yang Power and that would not be good for the State."

Loy Yang has a debt of over $A3 billion and is up for sale. In May 2003, the company flagged a full-year loss of $A787 million.

A somewhat confused Victorian Energy Minister, Theo Theophanous, delivered a tirade to reporters about the ACCC blocking bids by both companies, however, Origin Energy has had no word from the ACCC.

Currently Loy Yang is 49.6% owned by CMS Generation, 25.4% NRG Energy and 25% by the Australian listed Horizon Energy investment fund.