“If there is no co-insurance then the Government may need to consider re-aggregation of the Gentrader bundles…”

NSW Government’s supplementary submission to the ACCC on February 5, 2010

”…the ACCC is not satisfied that the co-insurance arrangement is necessary for the reforms to be implemented or for the benefits of the reforms to be realised” 

ACCC Media Release, 26 March 2010

Shadow Minister for Energy Duncan Gay and Shadow Treasurer Mike Baird today said State Labor must take its failed Gentrader electricity sale model back to the drawing board.

Mr Gay and Mr Baird made the call after the ACCC yesterday proposed to deny authorisation to the NSW Government-owned electricity generators and the future acquirers of the Gentrader bundles to join and use a joint risk management arrangement. 

“This arrogant and incompetent State Labor Government has repeatedly failed to listen to industry who have had concerns on the Gentrader model of sale from day one,” said Mr Gay.

“ACCC’s proposal to deny authorisation, essentially because the model is anti competitive, will cause further delay and further uncertainty to a market already riddled with uncertainty.

“It also means this whole process is lurching towards the precipice of where the Government goes into caretaker mode.

“This whole failed process and whether it goes ahead at all needs serious rethought.”

Mr Baird said the fact the market, then the industry and now the independent regulators have rejected the Gentrader sale model was a telling tale for Labor.

“Labor clearly needs to take this back to the drawing board, it has all the hallmarks of another CBD Metro debacle, spending hundreds of millions of taxpayer dollars on a process that’s going nowhere.

“We’ve consistently argued that selling these assets with the uncertainty surrounding ETS and the CPRS scheme is completely financially irresponsible.

“NSW taxpayers are already paying dearly for Labor’s 15 years of mismanagement of the electricity sector.

“The NSW Liberals & Nationals will continue to put pressure on this incompetent State Labor Government to make sure NSW electricity customers get the best value for their money and a fairer deal.” 

MEDIA: Lisa Harrington - 0406 726 880

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