Ergon Energy is a subsidiary company of Energy Queensland Limited (EQL) a Government owned corporation owned by the Government of Queensland. It distributes electricity to around 700,000 customers across Queensland, excluding South East Queensland through a distribution network regulated by the Australian Energy Regulator (AER) who set the prices that Ergon is allowed to charge for distribution.
Ergon Energy became a subsidiary of EQL on 1 2016. Ergon was formed in 1999 by the Queensland Government, from the then six regional Queensland electricity distributors and their subsidiary retailers. In 2007 the Queensland Government sold approximately 50,000 contestable electricity customers and retailer trading activities to AGL. Smaller electricity customers which are not economic continue to be billed by Ergon Energy and the electricity distribution network remains in public ownership.
Today the principal operating companies are Ergon Energy Corporation Limited, as the electricity distributor, and its subsidiary Ergon Energy Queensland Pty Ltd, the electricity retailer. Ergon Energy’s retailer is only permitted, by legislation, to sell electricity at the Queensland Government’s Notified Prices (overseen by the Australia Energy Regulator(AER)), enabling Queenslanders to access the same uniform electricity tariffs.
The electricity generation and distribution network consists of approximately 150,000 kilometres of powerlines and one million power poles, along with associated infrastructure such as major substations and power transformers. Ergon Energy also owns and operates 33 stand-alone power stations that provide supply to communities across Queensland which are not connected to the main electricity grid. Since August 2007, Ergon Energy has owned and operated the Barcaldine gas-fired power station along with its associated infrastructure, which supplies power to the main grid. Ergon owns the Windorah Solar Farm, a $4,500,000 project completed in December 2008 producing up to 360,000 kWh of electricity a year, reducing the town of Windorah's need for diesel powered generators, and reducing fuel consumption by more than 100 000 litres annually.
The company controls subsidiary is Ergon Energy Telecommunications Pty Ltd, trading as Nexium Telecommunications, which services Ergon Energy’s communications needs and, as a licensed telecommunications carrier, offers the Queensland marketplace wholesale high-speed data services. Ergon is also a shareholder in a joint venture with Energex Limited (its south-east Queensland counterpart), SPARQ Solutions Pty Ltd, which provides information and communications technology (ICT) solutions and services to both organisations.