Another abysmal power industry privatisation has occurred under the Australian Labor government - this time its a state Labor government, by arguably the most corrupt political party in the Western world. One suspects there will be millions of dollars flowing into Swiss bank accounts next year - a nice Xmas bonus for some. Aside from selling these assets too cheap, there are other failings in the deal:
1. Selling power assets during recession
2. Selling power assets with a huge contingent liability or albatross circling ahead thanks to this nonsense about global warming.
3. Selling assets to generators who will be able to engage in price collusion
4. Selling assets when you still control other power assets, and thus will be discounted by still having a conflict of interest in the sector.
5. Loaded terms - like the need to refurbish an old power station. Why adopt such terms, unless your intent is to artificially prop up the employment market
I guess the good news is that - the more they sell - the less damage they can do in the long run. Well, you'd think so...but really this is just a precursor to some flawed investment in some other sector. Or will it be a reduction in debt, so it can be blown out again on some poorly conceived investment like wind generation....which will be sold off after the climate change fiasco is deadwood.
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Author
Andrew Sheldon
