Widespread electricity privatisation flagged in state budget

Widespread privatisation of Western Australia’s publicly owned electricity system has been flagged in this year’s state budget, which was delivered in State Parliament today.

The Barnett Government’s seventh budget stated that generation facilities of both Synergy and Horizon would be up for sale, as well as parts of Western Power.

The news came on top of recent announcements that private companies would be allowed to sell electricity to consumers, and that the regulation of the state’s poles and wires would be transferred to an eastern states regulator, with experience in regulating privatised systems.

The Australian Services Union (ASU) and Electrical Trades Union (ETU) joined forces in 2014 to campaign against the privatisation of WA’s electricity network.   The two unions believe that privatisation will lead to much higher prices, poorer quality services, increased bushfire risk and many fewer jobs and apprenticeships.

ASU WA Branch Secretary Wayne Wood said the Barnett Government had finally shown its hand on electricity privatisation.

“Today’s state budget has revealed that the Barnett Government intends to sell power stations in both the city and the regions, as well as parts of Western Power, to help address its massive debt problems,” Mr Wood said.

“Mr Barnett’s use of privatisation to address his budget problems is a betrayal of future generations, with today’s problems passed on to our children to solve and pay for.”

“Privatisation will inevitably lead to foreign ownership, resulting in Western Australian jobs heading overseas, as well as the offshoring of profits from our electricity system.”

ETU WA Branch Lead Organiser Joe Fiala called on the State Government to provide clarity about which assets it intended to sell.

“There is a lot of anxiety among workers in Synergy, Horizon and Western Power, who are understandably worried about their jobs, and the welfare of themselves and their families,” Mr Fiala said.

“Privatisation means higher prices and poorer quality services, as private companies try to squeeze every last dollar of profit for their shareholders.

“In addition to higher prices and poorer quality services, privatisation also means fewer jobs and apprenticeships.   This is a big worry for workers, and it is a big problem for the economy, as the mining boom comes off the boil.”