E.ON 'to sell UK cheap energy distribution network' - 08/11/2010
Energy suppliers E.ON could be poised to sell its UK electricity distribution network in a deal worth up to £3.5 billion, say reports.
According to the Sunday Times, cheap energy clients who use power supplied by the company could soon be managed by a consortium consisting of the Abu Dhabi Investment Authority, Canada Pension Plan and Australian Bank Macquarie, Reuters claims.
This consortium is said to have failed to close a deal for the sale of UK power grids from energy suppliers EDF in July. These assets were instead purchased by a Hong Kong millionaire.
The distribution network - Britain's second-largest - serves cheap gas and electricity clients in areas previously supplied before electricity privatisation by the Midlands and East Midlands Electricity companies.
It comes after E.ON announced a partnership with ScottishPower Renewables to trial two wave power machines off Orkney in Scotland.
The companies will look at data gathered during the testing stage to consider whether future commercial schemes can be set up.
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