Privatisation set to hike electricity costs further

The NSW Government’s botched sale of the state’s electricity assets is likely to lead to increased electricity prices for NSW residents, compounding already-earmarked increases of up to 42 per cent between 2010 and 2013.

“This half-baked sale of the state’s electricity industry will see prices rise for electricity users across the state,” said Greens MLC David Shoebridge. “The residents of the inner west, who are already facing cost pressures from housing and groceries, will not be immune from these increased costs.”

Mr Shoebridge said one of the unreported aspects of the deal was that it saw two of the state’s biggest retailers, Origin and TRUenergy, also effectively become electricity generators. “Most pundits believe this will lead to less competition and higher prices – the exact opposite of what the Government said it wanted to achieve from this sell-off,” he said.

State Treasurer Eric Roozendaal has defended the deals on the grounds that it allowed the state to clear its debt and maintain its AAA credit rating.

But according to Mr Shoebridge, the rushed sale of the assets represented “a clear ideological drive from the Treasurer to do as much privatisation as he possibly can before the election.”

The deal has been shrouded in controversy since its announcement on December 15, as it was completed in the wake of eight resignations from the boards of state-owned Eraring and Delta Electricity.

It has also been heavily criticised by shadow NSW treasurer Mike Baird, who said it was, “probably the worst deal that has ever been signed off by a state government.”

Mr Shoebridge said the Greens would move legislation in any new Parliament to tear up the Gentrader contracts and reverse the privatisation process.