The Taranaki, Wanganui and Rangitikei based electricity and natural gas company, Powerco Ltd, today withdrew its application for clearance to acquire 100 percent of the shares in Egmont Electricity Ltd.

Egmont Electricity is owned by the South Taranaki District Council. The Council voted on August 29 "to retain its sole ownership of Egmont Electricity at this time".

Commerce Commission Chairman Dr Alan Bollard said Powerco had applied for a clearance on August 15 and the Commission was to have made its decision by today.

The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any market.

The Commission will grant a clearance if it is satisfied that dominance is not acquired or strengthened. A clearance, if granted, protects the acquisition from court action under the Commerce Act.

Media contact: Communications Officer Vincent Cholewa

Phone work (04) 498 0920, home (04) 479 1432