The AES offer for the brown-coal fired station aims to trump the ACCC-blocked bid from Australian Gas Light company (AGL) and will guarantee no job losses, workers entitlements and existing enterprise bargaining agreements.

AES has called for the Loy Yang banking syndicate to put the station into receivership after the expiry of an exclusive AGL-led negotiating period on December 19. The company will then offer to acquire the assets and repay the $3.1 billion in debt owed by Loy Yang Power.

However, for Horizon Energy, whose sole asset is a 25% share in the power partnership, the bid could not stem a $30 million drop in revenue from $165.9 million last year to $134 million for the 2003 September quarter.

Horizon said credit issues surrounding the sale of its Loy Yang Power station were to blame for the 20% fall in revenue.

The plant, located in Victoria, is the subject of a controversial $3.5 billion sale agreement with the Great Energy Alliance Corporation which has drawn the ire of consumer watchdog, the Australian Competition and Consumer Commission.

Previously the ACCC stated that it remains firmly of the view that the proposed acquisition creates substantial competition concerns which are potentially in breach of section 50 of the Trade Practices Act 1974.

"It would lead to a less competitive and less efficient market structure in Victoria and, potentially, in the National Electricity Market," said ACCC Chairman, Graeme Samuel.

"This is likely to result in higher prices, increased barriers to entry and a resulting substantial lessening of competition.