[Greens-Media] Auditor-General lifts lid on O'Farrell electricity price sham

[John Kaye]

Auditor-General lifts lid on O'Farrell electricity price sham

Media release: 4 November 2013

The O'Farrell government passed up an opportunity to take the pressure off household electricity bills in order to pursue its obsession with returning budget surplus and to fatten up the distributors for privatisation, according to Greens NSW MP John Kaye.

The Audit Office's 2013 report into the state's electricity industry (http://j.mp/18RDDxF) exposes huge increases in the dividends being paid by the state-owned wires and poles companies to the NSW government, despite average power bills more than doubling over the past six years.

The report showed that dividends paid to the government had grown from $494 million in the year ending 30 June 2012 to $913 million in 2013.

Dr Kaye said: "Premier Barry O'Farrell, Treasurer Mike Baird and Energy Ministers have been busy blaming the carbon price for rising household power bills while collecting almost $1 billion from the wallets of electricity consumers.

"Households in 2013 were denied the full financial benefits from the cancellation or delay of gold-plating transmission and distribution projects because the O'Farrell government wanted to extract yet more profits.

"While the money will mostly go to useful purposes, jacking up power bills is the most unfair way to raise revenue.

"Larger families and lower income households shoulder an unfair share of the burden. There are better ways to finance the state.

"At the very least, these profits should be redirected into low income households to help them fit solar panels, high efficiency water heating and refrigeration, and lower energy heating and cooling.

"Escalating dividends are yet another step towards privatisation of the wires and poles.

"Potential purchasers will be prepared to pay more for distributors that can return greater profits.

"Potential buyers will be prepared to pay more for corporations that can turn a bigger profit and pay larger dividends.

"Treasurer Mike Baird has made no secret of his desire to sell off the wires and poles. He is fattening up the distributors with rapid growth in dividends.

"The Treasurer is trying to claim that the $419 million increase in dividends to the state government was within the projected envelope.

"The envelope on dividend rises was always unrealistic. In an environment where the wire and poles businesses are reducing their capital expenditure, the limits are even more outrageously generous," Dr Kaye said.

For more information: John Kaye 0407 195 455


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John Kaye
Greens NSW MP

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Mail: Parliament House, Macquarie Street, Sydney, NSW 2000

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