New South Wales power sale sees A$1.2bn profit

Australia’s auditor-general has reported that the state of New South Wales (NSW) made a profit of over A$1.23bn ($1.28bn) on the partial sale of the state’s power assets.

The audit said that the sale of its retail assets – EnergyAustralia, Integral Energy and Country Energy ” generated a profit of A$3.08bn, but the sale of generation rights saw a loss of A$1.85bn.

The report attributed the significant loss on the generation rights to write-downs in the values of the power stations “to reflect their sale price”.

The audit also found that while the wholesale price of electricity in NSW had fallen by 16.9 per cent in the last financial year, retail prices paid by consumers would rise 17.3 per cent next year.

The auditor-general said that the main drivers of the price gap were network costs and renewable energy schemes, which together accounted for 87 per cent of the increase.

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