“The hedging losses are detailed in annual reports released by Macquarie Generation, Delta Electricity and Eraring Energy which John Watkins jointly signs off on, yet he failed to answer the question,” Mr Baird said.

"It’s logical to ask the Minister for Finance to explain the decisions that lead to these losses but amazingly he had no answer,” he said.

"Taxpayers will be duly concerned if the Iemma Government does not know the risks the generators are handling that have led to these losses.”

Hedging contracts lock in electricity wholesale prices as protection against market volatility.

The annual reports tabled in Parliament this week show that Macquarie Generation had $1.7 billion in hedging losses for the 2006-07 financial year, Eraring Energy lost close to $900 million and Delta Electricity lost $1.05 billion.

"If Mr Watkins can’t explain why the losses occurred, he should release the hedging policies and allow them to be benchmarked against the market. Taxpayers deserve some assurances that these losses won’t be repeated,” Mr Baird said.

"The Minister may refuse to answer, but $3.7 billion in losses deserves a response.

“This is a major blow to John Watkins’ ambitions to take over from Morris Iemma next year.

“In light of these significant losses and a likely rising electricity price market over the next few years, it is in the interest of all residents in NSW to know the hedging policies of these generators,” Mr Baird said.

MEDIA: Lisa Harrington - 0406 726 880

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