Costa's power sell-off disaster

Date: 26 June 2008

More than 1.5 million people will be ripped off if the State Government makes an early bid to sell Energy Australia, warned the United Services Union today.

NSW Treasurer Michael Costa announced further details of the Government's plans to sell off the profitable energy retailer today, clearly putting profits ahead of services and jobs.

The United Services Union responded today by saying the NSW Government was going to lose a profitable retailer, with no guarantees to consumers or employees that services would remain or jobs would be safe.

The announcement that energy bills would be hit with a 10 per cent increase from 1 July also hinted that the Government was only thinking of the bottom line.

"From 1 July consumers will be hit with high energy bills, which will only get worse if the Government's plans for privatisation are pushed through. They are simply fattening the pig for market," said Ben Kruse from the United Services Union.

"Today's announcement is once again all about profits, profits, profits."

With prices set to skyrocket, the United Services Union is also concerned on the repercussions for environmental policy in the lead up to the Garnaut report next month.

"We are headed for a carbon market which will impose further penalties on energy retailers. We are facing a future of expensive energy with no environmental standards which will only up prices further," said Mr Kruse.

Mr Kruse also expressed concerns for the government's proposal to sell off Country Energy, Integral Energy and the electricity generators which would have a further impact on workers and customers.

With no word on forced redundancies or long-term job security, it will be regional employment and NSW Energy consumers who suffer.

For further information

Contact:	USU Information Centre
Phone:	1300 136 604
WWW:	http://www.usu.org.au

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