The release of new CPI data demonstrates that Sydney’s cost-of-living crisis is being worsened by skyrocketing energy prices, underpinned by the State Government privatisation of electricity networks. NSW electricity prices rose 25.3 per cent in the last quarter from July-September 2022.
Make no mistake, this is a privatisation fuelled energy price hike.
This quarterly rise in electricity prices is the biggest single quarter rise in NSW in over 30 years, and the second highest rise in the state’s history.
Electricity prices in NSW rose more than double the prices in neighbouring states, despite all states facing the same international headwinds.
Rising electricity prices in NSW contributed to over a quarter (27.9 per cent) of the cost-of-living increase for people in NSW.
Energy Minister Matt Kean has been quick to blame everyone but his own policy failures. This data shows that there are unique circumstances driving NSW’s cost-of-living crisis that he cannot blame on the war in Ukraine or the weather.
The government’s decision to privatise two of the three energy distributors in NSW has led to super profits from those two privatised utilities, according to the Institute for Energy, Economics, and Financial Analysis. Endeavour Energy and Ausgrid have charged people between $100-$200 extra per year as a result of super profits.
The one distributing company that has not been privatised, which is Essential Energy, only charged 0.2 per cent above normal profits (compared to 10 and 15 per cent for the privatised entities) – the equivalent of about $10 a year.
Back in 2015 when Matt Kean was talking about the privatisation of electricity assets he said, “privatisation would result in a more efficient network and therefore lower prices for consumers.” Years later it is clear that this is not true. There has not been better efficiency, and there certainly has not been lower prices for the people of NSW. The government needs to end its privatisation agenda now.
Because of Matt Kean and the NSW Liberal’s obsession with privatisation, it’s led to electricity prices going through the roof, reduced reliability and left households and businesses vulnerable to shortfalls.
At this rate families and businesses won’t be able to afford to keep the lights on – and year they are still threatening to sell off Essential Energy.
Jihad Dib, NSW Shadow Minister for Energy & Climate Change, said:
“The latest CPI data holds Matt Kean’s feet to the fire. He promised his policies would reduce energy prices by $130 for households and $430 for businesses. This is another broken promise.”
“Sydney families are paying more than the rest of the country. This shows that the NSW government doesn’t have a workable plan to tackle cost-of-living or energy prices.”
“No one will forget Matt Kean doing a press conference at 5pm telling people to turn their dishwashers off.”
JIHAD DIB MP
SHADOW MINISTER FOR ENERGY AND CLIMATE CHANGE
