Monday, December 10, 2007

Electricity Privatization?

Its good to see Premier Iemma got his electricity privatization plan through Cabinet. Lets see how far he gets with the unions.

THE New South Wales Government may have a fight on its hands as it moves to sell off state-owned electricity retailers and lease its generators in a move worth up to $25bn.

Unions have vowed to fight the proposal, saying it will mean higher power prices and job losses, and have rejected as "bribes" proposed payments to workers for switching to the private sector.

The NSW Government Cabinet and caucus today voted in favour of a proposal that would result in the Government leasing out its current power stations and selling all but the poles and wires assets of Energy Australia, Integral Energy and Country Energy.

The sell-off and leasing agreements will enable the private sector to build the new baseload generator, either gas or coal, required to meet demand by 2014 – saving taxpayers $15bn over the next 10 to 15 years.

The sale of the retail assets could also generate about $10bn, the report commissioned into the industry by the Government has suggested....

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