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The Forum > General Discussion > NSW power without pride

NSW power without pride

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Correct me if I'm wrong, but as I understood the news bulletin of yesterday evening, the NSW government now plans to sell off just the electricity retailing business part of NSW power, Energy Australia. The government contends that it can do this without the need for additional legislation.

It is my understanding that these days, as electricity consumers, we have the right of choice individually as to which retailer is to supply our electricity in what we are told is a national electricity market. If this is true, what would happen if, as consumers, large numbers of NSW electricity users threatened to leave Energy Australia in protest, should such a sale look like proceeding?

Why would any new electricity retailer buy the Energy Australia business if by so doing they knew they might provoke a massive exodus of the customers who's business they were otherwise just about to purchase? Why would any electricity retailer already participating in the NEM buy custom that they could shortly have for nothing simply because customers were leaving Energy Australia in protest?

How would retaining the generating business and only operating as a wholesaler enhance the business prospects of electricity generation in NSW?

Is the threat of impending shortages just to scare us all? How does that threat stand up against the claim in OLO article "Fencing wire and mirrors: the world of the National Energy System" that "As a result [of the inception of the National Electricity Market Management Company], much the same amount of base generating capacity can meet our needs now as 20 years ago." See: http://www.onlineopinion.com.au/view.asp?article=7585

What would happen to the remainder of the National Electricity Market if NSW generation and transmission was withdrawn and used for supply of NSW consumers only? Has the rest of the NEM been avoiding shortages for 20 years on primarily the excess generating capacity of NSW? Why, if that is the case, should NSW consumers be facing shortages caused by failure of OTHER States or private operators to invest in infrastructure?

Others bludging on NSW?
Posted by Forrest Gumpp, Saturday, 30 August 2008 4:41:05 PM
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FG it is indeed a complex issue and Foxy you would not be happy to know a great many ALP members are as upset as I am.
It is not that this government must sell.
Or is it just jobs.
Country people who have never voted Labor and never will fear the sale as much as I do.
Evidence exists that services do drop a great deal after we sell what we already own.
Prices rise, but profits do too.
If we are going to pay more in any case why not keep in in our hands?
I know no words or white wash can change the fact great numbers of ALP members, maybe a majority, have no time for this leadership team.
As I said well in advance of Rudd's win he would win well and be well liked, look at the polls.
But I get no joy in knowing without doubt, none at all, that the actions of this leadership team have already assured the opposition of a landslide victory.
And at least 2 terms in office.
My gut feeling is 3 terms, given they are colorless and seemingly without real policy's Morris has lost the election rather than them winning it he must go soon to avoid this.
Posted by Belly, Sunday, 31 August 2008 7:41:38 AM
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Belly there are no options.If they don't sell,then their AAA credit rating will fall thus we the electorate will have to pay much higher interest rates.They need at least $15 billion to pay for urgent infrastructure.They have rapidly falling revenues due the economy's loss of growth.The more they tax us the less they get.

The reality is that your members don't want to lose their cushy Govt jobs.Right now thousands in private enterprise are losing their jobs and houses because of the ALP's excesses.

What should happen is that all NSW PS should have their salaries be made equivalent to that of Vict or Qld for 5yrs,until the economy gets back on it's feet.Govt Depts need to be amalgamated and 30,000 bureaucrats need to go.This will save us a minimum $3 billion pa.

Jeff Kennett fixed Vict,but I don't think that Barry O'Farrell has the balls to do what is necessary.Barry lacks intensity and passion.They cannot afford any more delays.
Posted by Arjay, Sunday, 31 August 2008 3:52:37 PM
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Yes Arjay, Jeff Kennett fixed Victoria, throwing thousands of public servants out of work, plunging the state into recession, forcing further layoffs as small business lost their customers. Many public servants and others thrown out of work were broken by the experience, their plans for their future financial security in old age in ruins as they faced unrelenting poverty as their ability to get a job equivalent to the one they lost disappeared. At the height of the 1992 recession the bailiff resumed ownership of most of the BMWs, LandRovers dropping little Johnny and Jane outside Carey Grammar in an effort to recoup the 20% non-payment of school fees. A fine morning for us smirking old Holden drivers.

Many people who work in mental health marvel at the irony of Jeff Kennett heading up Beyond Blue as he single handedly caused so much mental anguish to so many. He was the cause of many people's depression not their saviour.

15 years on Victoria's electricity generation is owned by Chinese consortium. There have been 7 electrical trades apprentices as opposed to 700 apprentices in NSW, power is expected to cost a lot more when the capping contract expires this year.

It has been argued that Victoria's apparent poor credit rating was simply a few accounting entries and if political will had been otherwise the state still had a AAA rating.

Commonsense says that state provision of electricity should be cheaper than private ownership because the state does not have to return a profit to its shareholders. I find your underlying assumption of the laziness, venality or stupidity of public servants grossly offensive. This might be the case in your mediterranean or asian homeland but you are in Australia now mate - that's why your family migrated.
Posted by billie, Sunday, 31 August 2008 6:33:47 PM
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Arjay no offense meant but I can not take you seriously.
In another thread you claim 50% of Sydney siders want to leave.
On what evidence?
You share my view about the state of the NSW government but defend leadership ignoring the will of the party.
You place all the blame for our weakness on public servants?
And I truly am baffled by your request for more infrastructure?
Why? to sell like we propose to sell power?
Fact is do we need a triple A rating?
Could we not borrow money build power infrastructure and charge about the same as private enterprise would but retain public ownership?
Over taxing in places that drove investors interstate is more to blame than anything.
Have a closer look at the actions of our ex treasurer.
I am sure you will not be concerned at my lack of interest in your view but in fact I do continue to read your every word to try to understand you.
Posted by Belly, Sunday, 31 August 2008 7:30:17 PM
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Belly,that was done in a Roy Morgan poll published in the Tele.People in the Western Subs are not happy vegemites.How would the PS know anyway,they live another planet?
Posted by Arjay, Sunday, 31 August 2008 9:11:02 PM
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