Snowy Hydro Eyes Assets

Sydney Morning Herald

Monday March 10, 2008

Brian Robins

SNOWY HYDRO wants to buy some of the assets of the State Government's electricity retailers if they are sold as part of the Government's privatisation plan.

"With the sale of the NSW assets, we had hoped to be a buyer of those assets," said the managing director of Snowy Hydro, Terry Charlton. "If our customer base moves to our competitors, that is not good for our business."

Snowy Hydro sells electricity to state-owned power retailers such as EnergyAustralia, Integral Energy and Country Energy, which will be sold if the Government's plan succeeds.

"We need to invest $350 million every two to three years just to maintain our position in the national market," Mr Charlton said. "The only way we can do that is by listing on the ASX and raising equity."

The Greens MP John Kaye said that Mr Charlton's push to privatise Snowy was not what people should expect from the management of a publicly owned corporation.

"Mr Charlton has a clear conflict of interest. He would be in the box seat to head a privatised Snowy with a good chance of a much bigger pay packet," he said.

Snowy Hydro has been lobbying the Government to look at its privatisation again, after an a proposal in 2006 failed, but the Treasurer, Michael Costa, has rejected the idea.

© 2008 Sydney Morning Herald

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