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ETS delay spells big trouble for Tripodi's power privatisation plans
Tuesday 05 May 2009
Delays to the start date for the Rudd government's emissions trading scheme (ETS) have created a massive barrier for NSW Finance Minister Joe Tripodi's plans to sell off the state's electricity retailers and generator trading arms, according to Greens NSW MP John Kaye.
Dr Kaye said: "The scarce few potential buyers that were lined up before the delay in the ETS start will have no interest in an industry where there is so much uncertainty in underlying electricity prices.
"The corporate world, already smarting under the collapse of the credit markets, will now run a mile from Joe Tripodi's sell-off.
"Carbon costs could vary wildly depending on the final details of the ETS which are now unlikely to be known until late 2010.
"Unless the Rees government is prepared to off load the retailers and the generator trading arms at bargain basement prices, the whole electricity privatisation process is stalled.
"Joe Tripodi returns from overseas this week to find his plans in tatters.
"Any guarantees he might have given to overseas buyers have now evaporated.
"His sales trip has been a complete waste of taxpayers' money.
"Premier Nathan Rees should dump Finance Minister Tripodi and the electricity sell-off.
"Instead he should be concentrating on how his government can use public ownership to help households reduce their energy use to minimise the ETS's impact on their budgets.
"This cannot happen if privately owned energy traders are trying to squeeze as much profit as possible out of state's coal fired power stations and corporate retailers treat households as cash cows.
"The only practical solution to the state's energy needs is a publicly managed transition to energy efficiency and renewable energy," Dr Kaye said.
