NSW Treasurer Daniel Mookhey quiet on Eraring future, slams ‘absurd’ privatisation move

NSW Treasurer Daniel Mookhey has said he ‘wouldn’t use budget estimates’ to negotiate an Eraring extension, saying the government ‘had not made any commitments’

The future of Eraring Power Station was again put to NSW Treasurer Daniel Mookhey. Picture: Nick Cubbin

NSW Treasurer Daniel Mookhey has said he “wouldn’t use budget estimates” to negotiate with Origin Energy over the lifespan of its Eraring Power Station, telling a hearing the Minns government “had not made any commitments” on shuttering the large plant and was focused on ensuring “the lights stayed on”.

The Treasurer also revealed the government would consider potential sweeteners for households looking to electrify their homes, conceding it could bring down skyrocketing energy bills.

Mr Mookhey told The Australian on the eve of his first state budget in September that NSW had “lost control of its energy ­future” when the state privatised the coal-powered station in 2013.

In estimates on Tuesday, he repeated he wouldn’t play out negotiations with Origin publicly.

“What we have committed to do is to engage Origin to determine what their intent is, and whether or not they can play a role in stabilising energy,” he said.

Taxpayers could potentially pay billions to keep the 40-year-old power station open beyond its slated 2025 closure.

NSW Treasurer Daniel Mookhey during questioning at budget estimates. Picture: Richard Dobson

Energy Minister Penny Sharpe announced in September the state government had accepted the recommendations of an independent report urging the need for Eraring to stay open to safeguard electricity supplies and prevent soaring increases to bills.

The Treasurer again called the sale of the coal-powered station “one of the worst privatisations in Australia”.

“It will rank as one of the most absurd decisions because rather than NSW determining when coal-fired power stops, a private investor who answers to its shareholders would instead,” he said.

Mr Mookhey said he wouldn’t be using Tuesday’s budget estimates “as a principal device to negotiate”.

“We are being rigorous in ensuring the lights stay on in this complex market,” he said.

“Queensland, which holds onto its energy assets, has two big advantages: they get a big fat dividends check that they can use for energy relief; and they can make their own energy decisions.”

During estimates on Tuesday, Mr Mookhey also alluded to a possible scheme to incentivise the state to go electric, ditching gas in favour of energy-efficient home appliances.

Although the modelling wasn’t “advanced”, he said transitioning to electric appliances could allow families to save money.

Eraring Power Station on NSW’s central coast. Picture: Nick Cubbin

“We are looking at some of the incentive schemes that other states have to allow working-class and middle-income households to get access to these technologies faster,” Mr Mookhey said.

He said the schemes he was analysing were similar to those put forward by the ACT government, where new gas connections have been banned as it pursues a total transition to renewables by 2045. “We are certainly looking at whether or not any of these schemes can be adapted to NSW’s context,” he said.

Under the ACT’s Sustainable Household Scheme, eligible households can get a 10-year interest-free loan of between $200 and $15,000 to spend on energy-efficient products such as electric stove tops, ceiling insulation and rooftop solar panels.

Premier Chris Minns has ruled out a blanket ban on gas in lieu of electricity, stating premature electrification could exacerbate the state’s supply issues.

Additional reporting: Jessica Wang