We also consolidated our position in South Australia’s competitive industrial and commercial electricity market, attracting 40 percent of the market’s volume. Retailing and customer service operations prepared throughout the year for entry into the newly competitive South Australian residential energy market in early 2003.






Our upstream power production resources, managed by our portfolio management operation, are key to TXU Australia’s ability to manage price volatility and provide reliable supply. We own and operate the nation’s first commercial gas-storage facility, at Port Campbell, Victoria, and the 99-year lease and operation of the Torrens Island Power Station in South Australia, the largest gas-fired generating plant in

the nation. It generates up to half of the state’s electricity in times of peak demand.

In 2002, we secured gas agreements to meet current and future supply needs for our customers and Torrens Island. The agreements contain price-reset mechanisms that will maintain prices in line with market conditions.

We will use the SEA Gas pipeline, in which we became a partner in 2002, to transport gas from pipelines and our gas storage facilities in Victoria to Torrens Island. The expanded pipeline will deliver more gas at competitive prices, leading to more competitively priced electricity.

An important part of our business is the ownership and management of one of Victoria’s most reliable and cost-efficient energy networks, which distributes electricity and gas to over one million supply points across the state. Following our completion of a high-voltage power-line upgrade, customers in developing northeast Victoria now enjoy a more reliable power supply.

TXU Australia is proud to be a key provider in the nation’s innovative and exciting energy market