|John Kaye MP|
Media release: 2 May 2013
The opportunity to ease the pressure on household power bills has been sacrificed to fatten up the profits of the privatised electricity retailers and prop up the competitive market, according to Greens NSW MP John Kaye.
'Sneaking an extra charge on power bill', Daily Telegraph, 2 May, page 2, http://j.mp/10WbkkJ
IPART's fact sheet on the draft determination that is to commence in July 2013 is available at http://j.mp/IPART130502
Dr Kaye said "NSW households could have been experiencing real relief on their power bills.
"Instead of a 0.6 percent reduction in the pain of supporting a bloated electricity industry, the independent regulator wants households and small businesses to fork out an additional 3 percent to push up the profits of the electricity retailers.
"The corporations who purchased the state's suppliers will be laughing all the way to the bank.
"The previous NSW Labor government privatised the retailers, claiming competition would bring down prices.
"Now the regulator says prices have to go up to allow for greater returns to the suppliers to encourage more competition.
"After four years of catastrophic power bill rises caused by Labor's unnecessary over-investment in wires and poles infrastructures, consumers are to be denied the respite they could have had.
"Instead they are now being asked to make the power industry even more profitable for the private owners.
"The O'Farrell government is about to put even more pressure on households by privatising the generators and adding yet another layer of costs onto power bills.
"Energy Minister Chris Hartcher cannot yet again hide behind his false claims that it is green schemes that are hurting families and small businesses.
"He has to be honest about the failed competition policy that always promises lower prices sometime in the future but has never delivered.
"Electricity consumers in NSW are sick of waiting for the promised benefits of privatisation.
"The O'Farrell government should not allow the corporations that now own the state's retailers to walk away with yet another windfall profit," Dr Kaye said.