[Greens-Media] Decision day on NSW electricity future

[John Kaye]

Decision day on NSW electricity future

Media release: 4 March 2014

NSW is facing the prospect of the O'Farrell government handing over control
of the state's electricity industry to just three corporations, according
to Greens NSW MP John Kaye.

The Australian Competition and Consumer Commission (ACCC) is scheduled
today to release its decision on the O'Farrell government's proposed sale
of Macquarie Generation to AGL that would place 80 percent of the state's
electricity generator output and 85 percent of retail load in the hands of
just three corporations.

(ACCC 'AGL Energy Limited - proposed acquisition of Macquarie Generation
assets in NSW', http://j.mp/1okLNag).

Dr Kaye said: "The consumer watchdog has already warned that if AGL gets
its hands on Macquarie Generation, the energy conglomerate will have both
the ability and the incentive to manipulate prices.

"The concentration of market power into three companies would put the
squeeze on small retailers and push up prices for households and small
businesses.

"The supporters of electricity privatisation argued it was about increasing
competition in the industry.

"Instead, Labor and the Coalition's obsession with selling the state's
assets is creating extraordinary concentrations of market power.

"If the AGL deal goes ahead, the Keneally and O'Farrell governments will
have taken an industry with six competing publicly-owned players and turned
it into the plaything of three corporations.

"The ACCC has warned that AGL is already the largest generator in Victoria
and South Australia.

"NSW Treasurer Mike Baird wants to let it become the largest in NSW by
selling it 27 percent of the state's generation capacity.

"Successive privatisations are creating a giant that will be able to use
its market power across generation and retail to set prices and freeze out
its competition.

"The Treasurer is expecting a net windfall of $700 million from the sale
but households across NSW will pay much more than that for years to come if
the deal goes ahead.

"While the law limits what the consumer watchdog can do, the O'Farrell
government should put electricity consumers and the environment first and
dump its plans to sell Macquarie Generation," Dr Kaye said.

For more information: John Kaye 0407 195 455




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John Kaye
Greens NSW MP
phone: 0407 195 455
web: www.john.nsw.greens.org.au
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