An all-Australian consortium has entered into a binding agreement with the NSW Government for the $16 billion partial lease of Ausgrid.
NSW Premier Mike Baird said the transaction will deliver gross proceeds of $16.189 billion to the state and will help fund critical infrastructure projects as part of the government's $20 billion Rebuilding NSW plan.
“This is another excellent result for the people of NSW after our successful $10.258 billion lease of TransGrid,” Mr Baird said.
“Our poles and wires transactions are unlocking billions of dollars to fund new schools, hospitals, public transport and roads that will make a real difference to peoples’ lives.”
The successful, unsolicited proposal by IFM Investors and AustralianSuper was assessed thoroughly by government agencies and financial advisers using strict probity requirements.
The NSW Government will:
- retain 49.6 per cent of Ausgrid
- have an ongoing role as the lessor of the business and an investor
- continue its role as licensor of Ausgrid
- continue its role as safety and reliability regulator of Ausgrid.
Total Ausgrid network charges will be lower in 2019 than they were in 2014, as per the Electricity Prices Guarantee signed by the consortium.
Ausgrid will continue to be regulated by the Australian Energy Regulator which determines network prices.