This document proposes merging the electricity distribution assets of Queensland and New South Wales into a government-owned energy enterprise that could also operate as an international energy services company. It provides examples of government-owned energy companies like Singapore Power, EDF, and Vattenfall that successfully operate electricity, gas, and other energy infrastructure both domestically and abroad. The document argues that a large Australian government-owned energy company could help smaller renewable energy and efficiency companies break into international markets and extract greater value from energy infrastructure than privatizing assets through short-term leases.

1. Copyright John Hine and Associates Pty Ltd, www.developqld.net.au. Page 1
JOHN HINE AND ASSOCIATES PTY LTD
www.developqld.net.au
EXTRACTING GREATER VALUE FROM ENERGY INFRASTRCUTURE
December 2014
Context
There is pressure on State Governments to extract greater value from their assets and to improve the
operational efficiency of infrastructure, especially water, electricity and ports.
Privatising these infrastructure assets is seen by some as the best way forward.
A key issue here is that many of these infrastructure assets have a virtual monopoly and so, even if
privatised, need appropriate regulation to avoid abuse of this virtual monopoly.
The other issue is that these assets are organisations that are generally well run and could be turned
into an Australian owned business, for the wider benefit of Australia.
Outline Proposal
It is proposed that the electricity distribution assets of Qld and NSW be merged into a government
owned enterprise, perhaps with a minority ownership stake from another commercial partner, and be
given the brief to also be an international energy services company.
There is considerable scope for commercial services in at least;
 energy efficiency.
 managing energy distribution systems, especially in hot arid and tropical wet environments.
 renewable energy, with the significant research commissioned by the US Government on renewable
energy now coming to the market.
 integrating renewable energy with fossil fuel energy using ‘Smart Grid’ systems as being developed by
the CSIRO and others.
There are several examples where governments overseas have just done this.
One example is Singapore Power, which is reputedly in discussions with the current Qld Government
regarding long term leases of Qld energy infrastructure. Singapore Power is owned by the
Singapore Government (http://en.wikipedia.org/wiki/Singapore_Power) and operates a range of
electricity, gas and water operations in Australia, South Korea and Taiwan.
Another example is EDF, http://en.wikipedia.org/wiki/%C3%89lectricit%C3%A9_de_France, formerly
Electricity de France, is largely government owned and operates the French nuclear power
generators. The company also bought the British nuclear generators when they were ‘privatised.’
Tel: 07 3264 4568
Mob: 0432 027 744
Email: john@developqld.net.au
ABN: 67 157 769 901
74 Ballinger Crescent
Albany Creek Qld 4035

2. Copyright John Hine and Associates Pty Ltd, www.developqld.net.au. Page 2
EDF had €65.2 billion in revenues in 2010 and operates a diverse portfolio of 120,000+ megawatts of
generation capacity in Europe, South America, North America, Asia, the Middle East and Africa.
In Sweden, Vattenfall, http://en.wikipedia.org/wiki/Vattenfall, is a power company wholly owned by the
Swedish Government and generates power in Denmark, Finland, Germany, the Netherlands, Poland,
and the United Kingdom.
Such an Australian company would have a Board of Directors and be required to act commercially to
give a return on investment but also have some environmental and social responsibility components
of its Articles of Association.
Such a large government owned company could also be a vehicle for the large number of smaller
renewable energy companies and energy efficiency companies in Qld and NSW to break into
international markets.
It is strongly suggested that there could be so much more to extracting greater value from our energy
infrastructure than simply ‘selling them off.’
Yes, the current Qld Government is proposing long term leases, where the assets would revert to the
Qld Government, once the lessee is compensated for the maintenance and improvements done
during 99 years.
Such a lease arrangement in an area where the technology is changing rapidly seems very short
sighted.