CCC-banner-logo 13dec07
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Citizens Climate Campaign
Take Action Now
Implications of
Power Privatisation
in NSW
Walk Against Warming - Sydney, 2007
Walk Against Warming - Sydney, 2007

To the relief of those of us concerned about Australia's response to the threat of climate change, the recent federal election delivered a positive result. The swift ratification of the Kyoto Protocol by the new Labor government was a hopeful first step towards meaningful progress. Also encouraging is the presence of the new Prime Minister Kevin Rudd, and many of his ministers, at the UN negotiations at the Bali climate conference.

Nothing definite has yet come from the conference about the role Australia, as a developed country, is willing to take to combat climate change. However, while Australia can correctly insist that 2020 targets are not up for discussion in Bali, there is a strong argument from developing nations that there should be no concessions by them until the developed world takes the lead on cutting emissions. At this point we remain hopeful and are maintaining a watching brief.

At NSW state government level, there is less cause for optimism.

The media concentration on the federal election has meant that state issues have taken a back seat. While the Australian government attempts to find ways to cut our emissions, the state government in 2006 approved the giant Anvil Hill and Moolarben coal mines, and is considering development applications for more mines which would produce another 20 million tonnes a year.

On Monday 10 December the state Labor government voted to sell NSW state-owned electricity retail companies and lease its power generation companies to the private sector. There has been little public discussion about all the implications of this, particularly for potential impacts on climate change and development of the renewable energy industry.

However, comments by members of the public in the 'Letters to the Editor' of the Sydney Morning Herald have raised a number of concerns.

Chris Benham (Carnegie, Vic) wrote: "When Victoria privatised its power industry in the mid-1990s there were all the same promises Mr Iemma is making. The result, however, has been increased costs to consumers, inadequate maintenance leading to blackouts, massive transfers of profits offshore, the inability to implement strategic decisions on power generation and, most significant of all, the continued reliance on the oldest generator on the Victorian grid. Unlike the old public authority, the new private owners don't want to close our most polluting and greenhouse-gas emitting power station" (Sydney Morning Herald 11.12.07)

To create a prepared email to Morris Iemma, Premier of NSW
with a cc to Barry O'Farrell, Leader of the Opposition click here.

A copy of the email is shown below.

If you prefer to write (the only absolutely certain way to be sure your message is read), post to Parliament House, Macquarie St, Sydney 2000.

Christmas Tree

Thank you for your interest and support during this past momentous year.

You have helped provide the consistent grassroots pressure which has been a significant factor in shaping the new Australian government's position on climate change.

We wish you a very pleasant Christmas, and look forward to keeping up the good work with you in the New Year.

Regards from the Citizens Climate Campaign Committee



Morris Iemma,
NSW Premier
cc. Barry O'Farrell, Leader of the Opposition

Dear Mr Iemma,

I am concerned about the NSW government's decision to privatise electricity generation for a number of reasons.

The Victorian experience of privatisation has reputedly resulted in increased costs to consumers, inadequate maintenance leading to blackouts, massive transfers of profits offshore, the inability to implement strategic decisions on power generation and, most significant of all, the continued reliance on the oldest, most polluting generator in the state. What guarantees can your government give that this will not be the NSW experience?

We need an electricity industry that is working with Australia's climate change policies.

If privatisation of NSW power generation goes ahead, is your government prepared to give iron clad commitments that new private owners will not have indemnity against state environmental regulation and future carbon costs, or special privileges in a new national emissions trading scheme?

I look forward to your answer to these important questions.

It is essential that privatisation does not encourage more coal-fired power or further unabated growth in electricity consumption. These two factors are significantly responsible for our spiralling greenhouse gas emissions.

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