Electricity sale grinds to a halt

 

The delay of the sale is a further embarrassment for the government, which is already facing flak over several delayed and dumped transport projects.

This morning the Herald revealed that a metro underground rail system for Sydney was doomed, with the construction start date, which was due for this year, to be pushed well back when Premier Kristina Keneally releases her Land Use and Transport Plan on Sunday.

The move to delay the sale comes against the backdrop of continued uncertainty over the likely impact of the federal government’s emissions trading scheme, coupled with speculation that banks remain unwilling to lend to companies planning to bid for generator output, under the so-called gentrader model of the sale process.

The opposition’s energy spokesman Duncan Gay said: “The State Labor Government’s credibility has been shot to pieces with yet another failed transaction.

“The process is flawed, the timing is wrong, it’s time the Government admits it’s dead and gave it the last rites.

“It’s a case of another project, another failure for this incompetent Government.”

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