By obtaining Pulse's 1.1 million gas and electricity customers, AGL takes control of existing Gascor supply contracts from the Bass Strait reserves of BHP and Esso. AGL managing director Greg Martin said this plugged an emergency supply gap as its prime supply source of Cooper Basin goes into decline.

"Having access to two basins provides us with a competitive advantage compared to other gas retailers and relieves pressure in the short-term for us to find new supply sources for our NSW business," Mr Martin said.

Earlier this year, AGL agreed to take up to 40 petajoules from PNG from 2006 onward and the purchase of Pulse did not lessen this commitment, Mr Martin said.

Thanks to strong demand from domestic and international institutional investors, AGL said it had raised approximately $380 million by placing 41.1 million shares at $9.25 per share. The placement was underwritten by merchant bank UBS Warburg.

The additional funds will be used to reduce debt associated with Pulse and the allow the company to remain around its target gearing level, AGL said.

Following the sale of its stake in Pulse Energy, EdgeCap and its back office subsidiary Utilimode to AGL, United Energy reaffirmed its interests in acquiring the CitiPower distribution business as it refocuses back on networks.

With its strategic partner AMP, United has already expressed its interest in the Melbourne CBD CitiPower business, which American Electric Power put up for sale earlier this year after acquiring it for $1.7 billion in late in 1998.