IEG
International Energy Group (IEG) is a leading natural gas and LPG distribution and supply business located in the United Kingdom, the Channel Islands*, the Isle of Man and Portugal. IEG's United Kingdom businesses operate under regulated price regime, while assets in the Company's other jurisdictions do not.
IEG's businesses provide an essential service to a broad and stable customer base that underpins its cash flows. Existing installed connections provide an "availability based" income stream from a group of high credit quality counterparties with minimal operating costs. IEG has a strong market position in an industry that has high barriers to entry for potential competitors.
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Description
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LPG and natural gas, distribution and supply
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Asset Class Segment
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Energy Transmission & Distribution
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Location
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United Kingdom, the Channel Islands*, Isle of Man and Portugal
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Acquired
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June 2005
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BBI % Ownership
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100%
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Regulatory Environment
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UK: capacity charges (regulated price regime, fixed revenue per connection)
Channel Islands* & Isle of Man: monitoring
Portugal: open market, no economic regulation
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Customer Base
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UK: shippers of gas, largely residential with capacity charges
Channel Islands*, Isle of Man & Portugal: direct contracts with end-users, both commercial and residential
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Asset Age & Condition
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UK: 0 - 10yrs
Channel Islands* & Isle of Man: assets are in good condition commensurate with age
Portugal: 0 - 15yrs
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Utilisation
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Systems designed for 1:20 winter demand conditions
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Key Drivers
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New connections in gas and electricity
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* Guernsey & Jersey
See the ASX Announcements, Presentations and Related Sites section of this website for more information on this asset.