[Greens-Media] Wires and poles sell-off will fail to ease bill pain

[John Kaye]

Wires and poles sell-off will fail to ease bill pain
 
Media release: 18 October 2012 
 
The Productivity Commission's recommendation that NSW sell its remaining electricity assets will do nothing to address the overinvestment in electricity infrastructure that is driving up power bills, according to Greens NSW MP John Kaye.
 
Dr Kaye said: "The Productivity Commissions justification for privatisation is deeply flawed. 
 
"The efficiency savings identified by moving from a state to a privately owned electricity network include abandoning adherence to public sector employee benefits and social and environmental obligations. 
 
"The Productivity Commission was spot on in identifying gold plating of the electricity network as being responsible for driving up power bills. But privatisation would exacerbate rather than alleviate this situation. 
 
"The Productivity Commission's recommendation to undertake further privatisation of the electricity industry is a case of ideology getting in the way of common sense. 
 
"The reasonable response to address excessive power infrastructure investment would be to reduce demand through efficiency, not rampant privatisation. 
 
"Since July 2012 this year the Federal Government became responsible for regulating electricity prices. It is essential that the NSW retains ownership of the network in order to advocate for the interests of NSW residents. 
 
"Further energy privatisation would result in infrastructure being undertaken with the intention of driving profits. The needs of the community and the environment would come a poor second. 
 
"Public ownership is crucial to reforming the electricity industry to reduce power bills, drive down carbon emissions and retain a secure supply. 
 
"Former and current state governments approved the decision to overinvest in the electricity network. The NSW government must retain the power to rectify this situation," Dr Kaye said. 
 
For more information: John Kaye 0407 195 455