Integral Energy has ended a seven-year outsourcing relationship with EDS announcing it is negotiating a new, multimillion dollar deal with LogicaCMG and Optus.
Integral Energy CEO Richard Powis said LogicaCMG will maintain infrastructure and application services while Optus will manage the utility's telecomms services.
Although the deal is still undergoing final contract negotiations, Powis said it will represent two of the largest contractual agreements entered into by Integral Energy.
"After a partnership of more than seven years with our existing IT& T provider, EDS, we needed to test the market. I wish to publicly thank EDS for its hard work over the years, particularly its dedicated in-house team.
"Over the next five years, Integral Energy plans to invest $1.2 billion to upgrade our electricity network to ensure that service and reliability standards are met and that customer service is not compromised. IT&T has a vital role to play in this upgrade by supporting our customer service representatives, field staff and engineers.
"We believe that these new relationships will deliver the best operational and commercial results for Integral Energy."
The tender process began in February 2004 when Integral Energy issued two requests for proposals and received a strong response from the market.
EDS remains Integral Energy's IT & T service provider until the transition process is complete.
Integral Energy is a state-owned energy corporation with more than 820,000 customers from the Blue Mountains in NSW to the southern Highlands.