Energy asset sales a means of delivering affordable energy to struggling consumers

The Energy Users Association of Australia (EUAA) has welcomed the announcement by the New South Wales Government of the successful lease by an Australian-led consortium of electricity transmission asset TransGrid.

“For many years, energy users have called for the release of state-owned energy assets,” the association’s CEO Phil Barresi said.

“The potential savings arising such privatisation is significant, particularly in light of the impact of rising energy costs. This is clearly a step in the right direction to pass the efficiency gains and opportunities provided by privatisation on to consumers, and decrease energy prices.”

Mr Barresi said for too long, energy users in NSW had been disadvantaged by the existing policy of government-ownership – and studies demonstrate government-ownership drives up the cost of energy for consumers.

“The announcement gives energy users in NSW some cautious optimism that they are no longer captive customers to unreasonable and unjustified price hikes,” Mr Barresi said.

Network prices in Victoria and South Australia have fallen significantly since privatisation in the 1990s, however, NSW energy users have experienced significant disadvantage, with the price of distribution network services in NSW more than double than Victoria.

“Energy users welcome the long-awaited announcement with open arms and look forward to the benefits flowing on to consumers,” Mr Barresi said.