Australian Power and Gas (ASX:APK) Secures Further Three Year Victorian Wholesale Electricity Agreement

Sydney, Nov 18, 2010 AEST (ABN Newswire) - Independent energy retailer, Australian Power & Gas (ASX:APK), today announced that it has secured an extension of its current fixed price electricity supply agreement for a further three years for the Victorian market, with an option for a fourth year. The agreement extends its key relationship with a major Victorian generator.

The agreement extends the company's existing contract from 31 December 2010 through until 31 December 2013, with an option for the 2014 calendar year. The terms of the contract provide a full load following hedge to meet both current and forecasted demand in Victoria, as well as setting pricing for the full term of the contract. Flexibility has been negotiated in the contract in years two and three to further optimise hedging costs.

"The Victorian market has been the cornerstone of our rapid expansion since 2007. This wholesale electricity contract will enable us to continue to capture market share, while eliminating wholesale price risk and further support our continued growth and profitability," said Australian Power & Gas Chief Executive, James Myatt.

"Our ongoing success will continue to be underpinned by our conservative wholesale risk positions such as we have put in place with this contract, and our existing wholesale contract in our other key market of Queensland," Mr Myatt added.

Contact

Andrew Butler Australian Power & Gas Tel: +61-2-8908-2711 Mob: +61-419-818-801 http://www.australianpowerandgas.com.au