[Greens-Media] NSW power sell-off hits yet another wall

[John Kaye]

NSW power sell-off hits yet another wall
 
Media release: 21 May 2010
 
Treasurer Roozendaal’s electricity privatisation has taken yet another
body blow as the competition regulator rejected the Keneally
government’s application to hand NSW households over to a private
cartel, according to Greens NSW MP John Kaye (‘Watchdog pulls plug on
power sell-off plan’, SMH 21 May 2010, p. 3, http://bit.ly/smh100521)
 
Dr Kaye said: “The total value of the sale has been slashed. 
 
“The competition regulator has refused to allow the gentraders to be
organised into a cartel for the purposes of risk insurance. This is the
right decision to avoid higher power bills, but it is bad news for
Treasurer Eric Roozendaal and his plans to privatise the NSW electricity
industry.
 
“Multinational utility corporations are likely to be less interested
and will lower their bids. A sale without the co-insurance cartel would
deliver an even lower sale price.
 
“The Keneally government cannot argue that the banning of the
coinsurance arrangements is not important. 
 
“It is inconceivable Treasurer Roozendaal would have run the political
risk of putting his name onto a proposal to form a cartel unless he had
been advised it was essential to achieving an acceptable sale price.
 
“The Keneally government’s plans to reduce the number of gentraders
will undermine competition and inflict even higher prices on consumers.
 
“The ACCC has dealt yet another blow to a power privatisation scheme
that is already badly behind schedule, starved of cashed-up bidders by
the global financial crisis and hamstrung by an unworkable gentrader
model.
 
“It is time for Treasurer Roozendaal to run op the white flag and
abandon this ill-conceived and dangerous sell-off,” Dr Kaye said.
 
For more information: John Kaye 0407 195 455
 
 
 
----------------------------------
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