letter to Sydney Morning Herald 19 Feb 2008
In supporting electricity privatisation, your editorial ("More heat than light", February 18) ignores the terms of reference of the Owen inquiry. It had no alternative but to opt for privatisation because the last term was: "Determine the conditions needed to ensure investment in any emerging generation, consistent with maintaining the NSW AAA Credit Rating."
We know the ratings agencies don't like governments borrowing money, even though it is cheaper than private companies doing so.
Your leader writer believes that privatisation will transfer risk from consumers to the shareholders of private companies. However, if the Government has to bale out a failing electricity company, it is the consumers who will have to pay, through reduced services and/or higher taxes.
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