O’Farrell to send electricity bills soaring: breaks promise to freeze dividends – Gouges $169 Million more from NSW households

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Electricity bills are set to skyrocket even further because the O'Farrell Government will gouge an extra $169 million in dividends from households this year and next, Shadow Energy Minister Luke Foley said today.

"Barry O’Farrell has broken his promise to freeze electricity dividends and household electricity bills will be sent skyrocketing as a result," Mr Foley said.

"More than 5.5 million people will see their electricity bills soar because Barry O’Farrell is forcing energy providers to pay his Government massive dividends.

"The Liberals' and Nationals' election policy committed to not increasing electricity dividends above current budgeted levels during the first term of Government. Yet three days before Christmas, Treasurer Mike Baird tabled in the Parliament the corporate statements for most of the State-owned power companies – in an attempt to bury the broken promise.

"The O'Farrell Government's electricity dividend broken promise will see an extra $169 million in electricity charges being passed directly onto NSW households."

The Ausgrid 2011/12 Statement of Corporate Intent reveals the O’Farrell Government will increase dividends by: 

Year Budgeted dividend New dividend under O’Farrell Increase
2011/12 $205.0 million  $212.2 million  $7.2 million 
2012/13  $279.4 million  $327.8 million  $48.4 million 

 

The Endeavour Energy 2011/12 Statement of Corporate Intent reveals the O’Farrell Government will increase dividends by:

Year Budgeted dividend New dividend under O’Farrell Increase
2011/12  $133 million  $182.3 million  $49.3 million 
2012/13  $131.8 million  $195.9 million  $64.1 million 

 

"The O'Farrell Government's two senior economic ministers, Treasurer Mike Baird and Finance Minister Greg Pearce, have personally signed off on this plan to send electricity bills skyrocketing," Mr Foley said.

"Ausgrid and Endeavour Energy distribute electricity to more than 5.5 million people in NSW who will now be forced to pay for the O'Farrell Government's dividend gouging.

"These increases come on top of the 17 per cent electricity bill price hike Barry O’Farrell passed on to NSW families last July.

"In Opposition, Barry O’Farrell was on the side of families - now he is Premier he is sending electricity and water bills skyrocketing.

"Barry O’Farrell promised to help NSW families meet the rising costs of living - but all he has done since becoming Premier is send electricity prices and water bills soaring."

*Ausgrid was formerly known as Energy Australia. Endeavour Energy was formerly known as Integral Energy.