Power Sale Report


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NSW Auditor-General finds power sale ‘risks’

Posted 6 hours 30 minutes ago

The New South Wales Auditor-General has identified significant risks arising from last month’s sale of state-owned power assets.

Peter Achterstraat says he has not yet formed a view about whether the sale price or retention values are appropriate, because he has not yet finalised his review.

But in a preliminary report Mr Achterstraat points out the risks of the government owning, operating and maintaining the power stations and their employees under the transaction model.

He says they include paying liquidated damages if availability targets are not met and shortfall payments if the Cobbora mine is unable to deliver agreed amounts of coal.

The preliminary audit also reveals the government will have to reimburse the state-owned corporations after directing their boards to comply with the sale arrangements.

Eight board directors from Eraring and Delta resigned in protest when ordered to sign off on the deals reached with Origin and Tru Energy late last year.

Mr Achterstraat says he understands the entities are in negotiation with Treasury.

Treasurer Eric Roozendaal says the report reinforces how complex the sale process is.

“The Auditor-General comes up and presents a lot of the detail in his report and indicates he needs a lot more information to do a proper review,” Mr Roozendaal said.

“Where we’ve had the parliamentary committee opening with conclusions then attempting to work through a process to fulfil those conclusions.”

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I suspect that Eric Roozendaal is saying to complex to let the imbeciles we elect to the upper house to review the matter. Oh! he is in the Upper House. Oh that’s right but we did not elect him.

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