Bloating energy subsidies highlight electricity privatisations failure

MEDIA RELEASE – 19 June 2015

The Greens NSW energy spokesman Jeremy Buckingham today said the $196 million increase in energy rebates in today’s NSW budget (Budget Paper Number 3 – 7-8) demonstrated that the policy of privatisation and deregulation had failed and was now being propped up by $1.9 billion in subsidies over four years. The new “one-click energy switch” program through Service NSW was another indication that the ideology of privatisation had failed households in NSW.

“The privatised and deregulated energy market is gouging customers to the extent that subsidies have blown out by $196 million from $257 million in 2017-18 to $483.2 million in 2018-19,” said Greens MP Jeremy Buckingham.

“Having deregulated energy prices, the government is now having to step in with a new program where Service NSW will help customers find an energy deal.

“While the Greens support providing financial assistance to assist low income households avoid energy poverty, the huge increase in subsidies is an indication of a failing energy market where the big gentailers are exploiting their market power to gouge customers.

“The NSW budget used to get a healthy dividend from publicly owned energy utilities. Now the budget must allocate more and more in subsidies to try to counteract price gouging in the privatised marketplace.”

(Budget Paper Number 3 – 7-8)

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