Electricity sell-off spells greenhouse disaster

Commenting on leaked details of the Owen Inquiry into the future of base-load generation, Dr Kaye said: “Public ownership is essential if this state is to reshape its electricity industry to slash emissions.

“The Iemma government cannot privatise the retailers or sell off generators and hope to maintain any greenhouse credibility.

“Privately-owned retailers will need to sell more energy to make more profits. There is no evidence to suggest that our political process could deliver a regulatory regime that would be able to stop privatised retailers pushing up demand for energy.

“Worse still, retailers that are no longer in public hands will inevitably end up owned by the big generators who will use them to push up demand and the market price of electrical energy.

“Promises to keep retailers out of the hands of generators should not be taken seriously. Experience with other big money industries like retailing demonstrates the inability of governments and regulators to stop concentration of ownership.

“Publicly owned retailers on the other hand can work with customers to improve energy efficiency and to shape demand to match renewable energy sources.

“Achieving demand reductions will require sophisticated partnerships between household consumers and their suppliers. Retailers will have to become much more than the people who send you a bill every quarter.

“Selling off coal-fired generators would create a property right to pollute.

“The Iemma government should be talking about phasing out coal-based generators, not handing them over to corporate control that will want to squeeze every last drop of profit from them.

“The Iemma government should reject electricity privatisation and go back to the drawing board to design an industry that reduces emissions and looks after consumers,” Dr Kaye said.