Electricity privatisation in NSW - an update

It has been just over a year since the NSW Government passed the Electricity Generator Assets (Authorised Transactions) Act 2012 to facilitate the sale of the remaining State-owned electricity generation assets – with those assets already subject to GenTrader Agreements to be sold first to their respective GenTraders (i.e. Origin Energy and EnergyAustralia).

Origin Energy have now acquired the Eraring and Shoalhaven power stations for $50 million having previously paid the Government $609 million for the output of those generators under a GenTrader Agreement. ¹ Origin Energy will also receive $300 million in break costs as a result of the Government's termination of the coal-supply agreement with the State-owned Cobbora mine negotiated under the GenTrader Agreement. ² The Government has also advised that while the Cobbora coal contracts with Macquarie Generation and Delta Electricity have also been terminated, no compensation will be required as those entities have