Mr Iemma said that the government would accept Professor Owen’s key recommendations while still keeping electricity assets in public ownership.
To secure future growth in the private energy sector the state government will lease out existing power generation assets to private operators while the ownership will still remain in the public’s hands. The state-owned companies Energy Australia, Integral Energy and Country Energy, will keep their ‘poles and wires’ assets in government ownership while their retail lists and functions will move to private operators.
Since the release of Professor Owen’s report, the government has undertaken extensive analysis and consultation with key stakeholders including unions on a range of issues including – price volatility due to price regulation, job security for energy workers, environmentally friendly power generation and helping develop potential projects.
Mr Iemma said that consumers will be protected with regulated prices by The Independent Pricing and Regulatory Tribunal of New South Wales (IPART) for households and small businesses for a further three years to 2013, or until the government is satisfied that there is an effective competition to keep downward pressure on retail electricity prices.
