TXU Europe buys Norweb Energi

TXU Europe has bought the Norweb Energi gas and electricity supply business of United Utilities in a deal worth more than £800m to the debt-strapped power and water group. TXU is paying £310m in cash and is assuming Norweb’s portfolio of power purchase agreements. The PPAs, two of which are 5-7 years deals, were negotiated […]

TXU Europe has bought the Norweb Energi gas and electricity supply business of United Utilities in a deal worth more than £800m to the debt-strapped power and water group. TXU is paying £310m in cash and is assuming Norweb’s portfolio of power purchase agreements. The PPAs, two of which are 5-7 years deals, were negotiated at prices that were widely believed to be uncompetitive, particularly in the new electricity market that will prevail from early next year.