Privatisation without regulation can force more families into hardship says ANGLICARE
ANGLICARE Sydney CEO, Peter Kell expressed serious concerns about the proposed sale of NSW electricity utilities by the current Government.
Urging the government to retain the ‘common good’ features after 2013 as a condition of the sale Mr Kell said, “Privatising NSW’s electricity retailers comes at a difficult time especially for NSW’s low income sole parent and single person households who are struggling with the rising cost of rents, food and fuel.”
While the recent increases in funding for energy rebates and extensions to people receiving the Carers Allowances, Sickness Allowances, Special benefits and the Energy Accounts Payable Assistance (EAPA) scheme have been welcomed, ANGLICARE says it may not prevent financial stress on budgets that are already stretched.
“In 2006 more than 26,000 NSW households were disconnected from their electricity supply because they could not pay their electricity bill,” Mr Kell said.
“Almost three quarters of people who needed our help with energy bills over six months had overdue notices. A further one in six people had been served with a disconnection order.”
The latest independent pricing and regulatory tribunal decision on electricity prices allows a 26% staggered rise from now until 2010. ANGLICARE is concerned this already signals added pressure for vulnerable low income consumers in the future.
The government has provided some ‘common good’ conditions to assist low income households and has promised price regulation at least until 2013 or until sufficient competition is in place.
“The problem is that after 2013 or soonthereafter, the government will have no regulatory powers over the cost of electricity,” Mr Kell said.
“In South Australia where privatisation has already occurred, there was a 40% rate hike in eight years. Furthermore, the South Australian regulator of electricity attributed more than 20% of the $71 megawatt hour rate hike in late 2003 to privatisation.”
ANGLICARE Sydney seeks an assurance that the ‘common good’ elements conditional on the sale be guaranteed to operate in perpetuity to ensure that low income households are not forced into greater hardship.
Peter Kell is available for interview on 0402 849 010
Media contact: Agnes Wilson on 0412 434 307
