TRANSGRID LEASE EXPOSES CONSUMERS AND RENEWABLE ENERGY TO UNCERTAIN FUTURE

The $10.3 billion paid for the long-term lease of NSW’s high voltage transmission network raises serious questions about what guarantees have been given to the consortium and their costs for consumers and the future of the renewable energy industry, according to Greens NSW MP John Kaye.

Dr Kaye said: “The over-the-odds sale price looks like consumers have been served up on a platter to the multi-national consortium.

“Premier Mike Baird must come clean on the details of what guarantees were provided.

“TransGrid is the nerve centre of the electricity system in NSW.

“If a top-dollar sale price was locked in with a series of contract sweeteners, then inevitably it will be consumers and the renewable energy industry who will pay.

“With annual revenues of only $2.2 billion, TransGrid was set to be the smallest of the leases yet it has brought in what looks like a highly inflated price.

“This will help Mike Baird politically and it will provide for additional infrastructure but inevitably the additional cash will be extracted from households.

“The Australian Energy Regulator wrote down TransGrid’s allowable annual revenue from $2.9 billion to $2.2 billion.

“Clearly the new leaseholders are expecting something more for their $10.3 billion investment.

“There is little the electricity price commissioner can do to protect consumers after the first four years of the lease period.

“The transmission network, set up to deliver electricity from the state’s five large coal fired power stations to urban centres and large industry, is at risk of becoming an impaired asset.

“Somewhere hidden in this deal there will be a massive sting in the tail for NSW.

“Today the people of NSW have lost control over their energy future to a consortium of multinational corporations that care nothing for households or the clean energy future,” Dr Kaye said.

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