THE federal government is upping the pressure on the state to sell its electricity assets, saying it will lead to greater competition and lower power prices. Tasmania could claim part of a $5 billion asset recycling fund if Hydro, Aurora or TasNetworks were sold off. The federal government’s Energy White Paper, released yesterday, says privatisation would put downward pressure on household power prices. ‘‘Further privatisation of energy assets and increasing competition will enable energy to be supplied to households and businesses as cost-effectively as possible,’’ the white paper says. ‘‘The Australian government is committed to encouraging states and territories to free up capital to invest in additional economic infrastructure through privatising state and territory-owned energy assets under the Asset Recycling Initiative.’’ Industry Minister Ian Macfarlane said privatisation had driven down prices in Victoria. But Tasmanian Energy Minister Matthew Groom says privatisation is off the table, except for Aurora’s retail book and the Tamar Valley Power Station. ‘‘Our position on the energy assets is clear,’’ he said. ‘‘The most important thing from our perspective is that we’re delivering outcomes for power consumers, and we believe that we’ve achieved that.’’ Mr Groom said the state government was open to other retailers joining the market. The White Paper says competitive energy markets will also help to bring down gas prices, which are rising across the eastern states. A report last week found that Tasmanian businesses paid the highest prices in the country for gas, while residential customers were slugged more than Victorian households.
THE federal government is upping the pressure on the state to sell its electricity assets, saying it will lead to greater competition and lower power prices.
Tasmania could claim part of a $5 billion asset recycling fund if Hydro, Aurora or TasNetworks were sold off.
The federal government’s Energy White Paper, released yesterday, says privatisation would put downward pressure on household power prices.
‘‘Further privatisation of energy assets and increasing competition will enable energy to be supplied to households and businesses as cost-effectively as possible,’’ the white paper says.
‘‘The Australian government is committed to encouraging states and territories to free up capital to invest in additional economic infrastructure through privatising state and territory-owned energy assets under the Asset Recycling Initiative.’’
Industry Minister Ian Macfarlane said privatisation had driven down prices in Victoria.
But Tasmanian Energy Minister Matthew Groom says privatisation is off the table, except for Aurora’s retail book and the Tamar Valley Power Station.
‘‘Our position on the energy assets is clear,’’ he said.
‘‘The most important thing from our perspective is that we’re delivering outcomes for power consumers, and we believe that we’ve achieved that.’’
Mr Groom said the state government was open to other retailers joining the market.
The White Paper says competitive energy markets will also help to bring down gas prices, which are rising across the eastern states.
A report last week found that Tasmanian businesses paid the highest prices in the country for gas, while residential customers were slugged more than Victorian households.
