[Greens-Media] Tripodi's power trading rights sell-off scheme has no clothes

[John Kaye]

Tripodi's power trading rights sell-off scheme has no clothes
 
Media release: 7 September 2008
 
The Rees government's plan in next week's mini-Budget to privatise the
trading functions of the state's power stations is a recipe for chaos,
according to Greens NSW MP John Kaye.
 
Dr Kaye said: "Finance Minister Joe Tripodi is pushing a partial
generator privatisation scheme that has been rejected twice before for
very good reasons.
 
"Separating ownership of the operation of the generators from the
energy trading activity makes no sense.
 
"It creates a massive exposure to risk for the private owner of the
trading arm.
 
"If the power station shuts down at a time of high spot price, the
trader could run up losses of millions of dollars an hour because it
failed to deliver on a forward contract.
 
"The privatised trader would be at the mercy of the power station
operators.
 
"Banks and trading houses would not be interested in this kind of
financial risk unless they are given substantial financial incentives.
 
"Either the scheme is doomed to failure with no one bidding for the
contract, or it will end up costing the state a small fortune.
 
"When the NSW Treasury floated the idea in 2001 and again in 2004 it
was met with derision. 
 
"Minister Tripodi either has not thought this through or he is playing
a political game, the end point of which is the complete sell-off of the
generators.
 
"Either way, this aspect of next week's mini-budget will kick start
another round of the privatisation debate.
 
"The people of NSW have already unequivocally rejected the sell-off in
any form,” Dr Kaye said. 
 
For more information: John Kaye 0407 195 455 
 
 
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John Kaye
Greens member of the NSW Parliament
phone: (02) 9230 2668
fax: (02) 9230 2586
mobile: 0407 195 455
email: john.kaye at parliament.nsw.gov.au
web: www.johnkaye.org.au
 
mail: Parliament House, Macquarie St, Sydney NSW 2000