Many Hunter senior citizens are convinced electricity prices will rise now that the state government has started to privatise almost half of its power infrastructure.
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The government awarded the lease for major electricity firm Transgrid to a consortium of Canadian, Middle Eastern and Australian investors for more than $10 billion this week.
It marked a major milestone in the government’s plan to raise $20 billion for infrastructure by leasing 49 per cent of the state’s poles and wires for the next 99 years.
But Maitland residents are worried that the move will mean a rise in the cost of electricity and an increase in power failures.
Higher electricity bills would hit senior citizens, as well as others on modest incomes, particularly hard.
Bolwarra resident Catherine O’Brien said she believed power prices would go up after privatisation occurred, because private companies’ main objective was to make money for their share holders.
“Of course it is [going to affect prices],” she said. “These people in government who make decisions that are wrong for the people should be made pay.”
Elva Flanagan, 87, said she was worried about the impact the privatisation would have on electricity prices.
“I’m not mean by any matter or form, but I watch what I use because I feel that it [electricity prices] is going to go up and we’ve just got to try to manage it as best we can,” she said.
“You feel like a fool walking through your house switching off the lights, but it’s got to happen.”
NSW Treasurer Gladys Berejiklian said expressions of interest for the partial lease of Ausgrid opened this week.
The lease of Endeavour Energy, the final electricity company to be partially privatised, will take place next year.
Ms Berejiklian said the lease money would be invested in new schools, roads, water infrastructure, rail and hospitals, as well as sports and cultural facilities.
“We have worked hard over the year to deliver on our $20 billion infrastructure package and this week we are taking a big step towards honouring that commitment,” she said.
The state government plans to lease 49 per cent of its electricity infrastructure for the next 99 years to raise $20 billion to spend on infrastructure.
This will involve the lease of three electricity firms.
The lease of Transgrid to an international consortium of investors took place this week and raised more than $10 billion.
Expressions of interest have opened for the lease of Ausgrid.
The lease of Endeavour Energy will be awarded in 2016.