[Greens-Media] Media release: Electricity sell-off brought to grinding halt by competition watchdog

[Lauren Waldon]

Electricity sell-off brought to grinding halt by competition watchdog

Media release: 4 March 2014

The O'Farrell government should keep Macquarie Generation in public hands to avoid further concentration of market power in the electricity industry, according to Greens MP John Kaye.

The consumer watchdog today announced<http://j.mp/ACCC-MacGen> its opposition to the O'Farrell government's plan to sell the state's largest electricity generator to AGL, a move that would have seen AGL control 80 percent of the state's power output and 85 percent of retail load.

Dr Kaye said:  "The O'Farrell government should have realised from the start that the ACCC would oppose this deal.

"Putting more than 80 percent of the energy production and consumption into the hands of just three companies was always going to fail the competition test.

"AGL is already the largest generator in Victoria and South Australia.

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

"Treasurer Mike Baird wanted the maximum amount of cash he could get his hands on now and he didn't care about the long term impacts on household power bills.

"The O'Farrell government should abandon the sale of MacGen.

"There is much to be gained from the state maintaining a strategic presence in the power industry and using the dividends and tax payments as an income stream to borrow money for infrastructure.

"It's time to cut loose from the stand-over tactics of the rating agencies.

"Macquarie Generation will return $126.2 million in dividends and tax payments this financial year which will be lost under privatisation.

"It does not take long to pay back a $700 million loan with that kind of income stream.

"Tweaking the sale package will do nothing to stop a sale of MacGen creating undue power of electricity bills.

"Only a company interested in buying enough capacity to gain the ability to manipulate prices would be interested in paying a premium for the Bayswater and Liddell power stations," Dr Kaye said.

For more information: John Kaye 0407 195 455

John Kaye
Greens NSW MP

P: (02) 9230 2668 | F: facebook.com/john.kaye.mlc<http://www.facebook.com/john.kaye.mlc> | T: @johnkgreens<twitter.com/johnkgreens> | W: www.johnkaye.org.au<http://www.johnkaye.org.au>
Mail: Parliament House, Macquarie Street, Sydney, NSW 2000

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