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Government establishes
Electricity Safety Net in response to Unsworth Committee
10 April 2008

Australia — Premier Morris Iemma today announced a series of new consumer protection measures including a $272 million Electricity Safety Net package that will strengthen the Government's plans to secure NSW energy supplies.

Mr Iemma announced the initiatives in response to the Unsworth Consultative Reference Committee report.

"Today we are announcing initiatives that will help the environment, families and workers," Mr Iemma said.

"Our package includes increased utilities rebates for pensioners, carers and recipients of other allowances and stronger protections for workers and the environment."

The Iemma Government will provide:

  • $65 million over five years to increase pensioner energy rebates from $112 to $130 per annum, indexed to CPI;
  • $27.5 million over five years to extend energy rebates to include recipients of Carers Allowances (child under 16), Sickness Allowances and Special Benefits;
  • $125 million over five years to support the introduction of a "no disconnections policy" for small domestic customers in NSW;
  • $55 million over five years to increase the level of funding under the current Energy Accounts Payment Assistance Scheme to $100 million; and
  • Enhanced protections for employees in the retail and generation sector by requiring Government commitments on employee protections to be included in private sector bidders' plans.

The total cost of the Electricity Safety Net package is $272 million over five years.

In addition to higher pensioner rebates the Iemma Government will provide funding support for a "no disconnections policy" and other assistance for families facing severe financial hardship.

These enhanced consumer protection measures will be delivered once the Government's energy plans are substantially delivered.

"By accepting the overwhelming majority of the recommendations of the Unsworth Consultative Reference Committee we are delivering additional certainty, security and protection to families, employees and the environment," Mr Iemma said.

The Committee was established to provide an opportunity for representatives from unions, consumer and community groups to consider the Government's plans for the electricity industry.

The Government will establish a range of employee protections as prime criteria in assessing proposals from potential new operators of NSW power stations including:

  • The level of protection and certainty offered to employees and the mechanisms offered to enshrine in contracts and industrial instruments the undertakings made to staff by both Government and new operators;
  • Commitments to implement the NSW Government's policy regarding the protection and retention of superannuation entitlements including current contributions to accumulation funds above the 9 per cent entitlement;
  • Commitments to the maintenance of local and regional employment; and

The Government will also increase apprentice numbers across the public sector by 10 per cent each year over the next three years, creating about 180 additional apprenticeships.

To protect the environment and reducing greenhouse gas emissions the Government will:

  • Favour potential operators who are committed to ceasing Munmorah's existing operation as a coal-fired power station in a manner that ensures security of supply and replaces it with lower emission intensity supply options including baseload gas, and who have demonstrated plans and capability to retain Colongra as a peaking plant, or convert it to gas baseload; and
  • Introduce a long term NSW Energy Efficiency Strategy.

"The Committee's recommendations for a possible share market float of some electricity assets, which would involve a share offer to the general public, is attractive and will be given careful consideration," Mr Iemma said.

"The Government will receive advice from its financial advisers on this option."

Mr Iemma welcomed the constructive role played by the Hon Barrie Unsworth and the Committee in finding common ground and enhancing the Government's package.

"I have been encouraged by the constructive way the Committee has approached the issues and worked with the Government in the best interests of the community," Mr Iemma said.

"These are major steps forward in securing NSW's energy future."

Source Media Release from the Premier's office
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