Thursday, 15 December 2011

ASU opposes Fed Govt’s Draft Energy White Paper on sector reform – no further privatisation of electricity generation

http://www.asu.asn.au/media/utilities_energy/20111214_electricity.html The Australian Government has released two major electricity announcements in the last few days. The first calls for the Productivity Commission to examine electricity industry network regulation. The second and more urgent release is the Draft Energy White Paper concerned with energy sector reform. The ASU strongly opposes the propositions in the White Paper.  
The Draft White Paper calls for privatisation of state owned electricity generation assets. This position is opposed by the ASU, industry academics and industry stake holders.
The ASU believes reform should be more concerned with the function of the generators, inside or outside the market, not about ownership.
The ASU notes it has long been a Federal Government policy that generation ownership is up to state governments - that's where it needs to be argued. The ASU's position is that state governments do and should own power stations - they provide electricity for homes, business, regional employment and much more. We have had public electricity generation by state (and local government) for well over 100 years in this country. There have been many electricity industy reforms in that time and public ownership by governments has been part of that essential service.
The ASU will be making a strong submission to the Federal Government that state governments should continue to own power stations.
We call on the Federal Government to reject any change to the ownership model and look at the functions and the important role state owned generators play.
In addition to supporting the ASU submission against the Draft White Paper, members can advise their Federal MP of their concerns for regional jobs, employment and any ALP policy change.
In relation to the Productivity Commission investigation, the ASU will be making submissions. ASU electricity industry members would be aware that the Federal Government, through the Australian Energy Regulator, determines the network charges (by the network owners) of electricity distribution in both transmission and distribution. ASU has previously made representations to the Australian Energy Regulator. 
Releases and resources 
Minister's media release: "Productivity Commission to Examine Electricity Network Regulation"
http://minister.ret.gov.au/MediaCentre/MediaReleases/Pages/ProductivityCommissionExamineElectricityRegulation.aspx
Productivity Commission webpage for the inquiry:
http://www.pc.gov.au/projects/inquiry/electricity
Minister's media release: "Draft Energy White Paper Released"
http://minister.ret.gov.au/MediaCentre/MediaReleases/Pages/DraftEnergyWhitePaperReleased.aspx
Draft White Paper and related papers:
http://www.ret.gov.au/energy/facts/white_paper/draft-ewp-2011/Pages/Draft-Energy-White-Paper-2011.aspx
Draft White Paper Executive Summary:
http://www.ret.gov.au/energy/Documents/ewp/draft-ewp-2011/Draft-EWP-executive-summary.pdf

Greg Mclean