MADRID | Spain's Iberdrola today announced an agreement by which Iberdrola USA will sell to Direct Energy the 100% of its unregulated gas and electricity retail companies Energetix and NYSEG Solutions, both based in New York State for $110.2 million.
The two companies in the process of being sold provide electricity, natural gas and energy related products and services to residential, small business, large commercial and industrial customers. As of the end of May 2012 Energetix and NYSEG Solutions supplied electricity and gas to 247,500 customers.
The transaction involves the sale to Direct Energy, U.S. subsidiary of Centrica, of 100% of the shares indirectly held by Iberdrola through its wholly-owned sub
sidiary Iberdrola USA, in Energetix and NYSEG Solutions.
This transaction is within the framework of Iberdrola’s strategy of divesting non-core businesses, the company said, and follows a previous transaction in February 2012, when Iberdrola USA agreed to sell The Energy Network, LLC, the holding company for TEN Companies, Hartford Steam Company and CNE Power I, LLC., to New Jersey-based Energenic-US, LLC.
Electricity consumption has fallen in all Iberdrola's main markets, from Spain to the UK and Latin America. Demand for Iberdrola's energy supply rose by 9.1 percent in the first quarter this year, but only by 3.4 percent in the second quarter. Analysts in Madrid noted that the stock price of the Spanish corporation is also under pressure due to uncertainties over the regulatory framework, as the law for the reform of the energy sector in Spain is still to be passed by the government next July 20.