Western Sydney to bear the brunt of O'Farrell's dividend gouging

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Shadow Energy Minister Luke Foley has slammed the O'Farrell Government for misleading western Sydney residents about the causes of electricity price rises – and challenged the Premier to abandon his plan to gouge an extra $113 million in electricity dividends from Endeavour Energy.

"The O'Farrell Government has broken its election promise to freeze the electricity dividends paid to the government by the State owned energy companies," Mr Foley said.

"The broken promise will see an extra $113 million in dividends ripped out of Endeavour Energy by the O'Farrell Government.

"That dividend increase will contribute to electricity price hikes for more than 2.1 million people in western Sydney, Blue Mountains and the Illawarra.

"To make matters worse, Mr O'Farrell is refusing to financially assist the vast majority of households with the electricity price hikes his Government is responsible for.

"By comparison, the Commonwealth will fully compensate households for price increases associated with the carbon price.

"Instead of campaigning against the Commonwealth Government – which is compensating all families for the carbon price - the Premier should follow suit and provide financial assistance to all households, given the state's contribution to rising prices.

"Mr O'Farrell needs to take responsibility for the increases his government is responsible for."

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

 

*Endeavour Energy was formerly known as Integral Energy.