Ausgrid

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Ausgrid
State government owned
Industry Utility
Predecessor EnergyAustralia
Founded 1 March 2011 (2011-03-01)
Headquarters Sydney, Australia
Key people
Trevor Armstrong
Roger Massey-Green
Services Electricity distribution
Owner Government of New South Wales
Parent Government of New South Wales (49.6%)
IFM Investors & AustralianSuper (50.4%)
Website www.ausgrid.com.au
Ausgrid building, Sydney

Ausgrid is an electricity infrastructure company, owned by the Government of New South Wales, Australia, which owns, maintains and operates the electrical distribution networks to 1.6 million customers[1] in Sydney, Central Coast, Hunter Region and Newcastle areas of New South Wales. It was formed in 2011 from the previously state owned energy retailer/distributor, EnergyAustralia, when the retail division of the company, along with the EnergyAustralia brand, was sold by the Government of New South Wales, and the remainder renamed Ausgrid.

Ausgrid is owned by the Government of New South Wales; and it has two shares, one each held by the Minister for Finance, Services & Property and the Treasurer of New South Wales respectively.[2] Since October 2016, the company has granted a 99-year lease of its assets, in which the government continues to hold a 49.6% interest and a consortium of IFM Investors and AustralianSuper holds the other 50.4% interest.

Lease[edit]

In 2016, the New South Wales Government offered 99-year lease and 50.4% of the business of Ausgrid to bidders.[3] This was opposed by trade unions and the ALP,[3] the bidding was won by a consortium of State Grid Corporation of China and Cheung Kong Infrastructure Holdings, but on 11 August 2016, the Federal Treasurer Scott Morrison made a preliminary decision to block the sale to the consortium on the basis of national security concerns.[3]

In October 2016, Australian-based IFM Investors and AustralianSuper (in equal shares) were announced as the successful bidders for a 50.4% interest in a 99-year lease of Ausgrid for $16 billion.[4][5]

Controversy and criticism[edit]

Since 2012, Ausgrid has received numerous complaints and requests for better stakeholder management and consultation of the local community. Ausgrid was seen as forcing their network capacity increasing (and therefore profit increasing) projects onto local residential communities. Affected residents groups from the suburbs of Leichhardt,[6] Penshurst[7][8] and East Lindfield[9][10] protested against unwanted and dangerous electricity high voltage cabling, transformers and transmission towers[11] being installed in front of their residential homes without proper consultation or response to complaints by the community. The residents, after many urgent appeals to Ausgrid's COO Trevor Armstrong and the chairman Roger Massey-Green, had been given no other option to notify local MP's, the media, the Environmental Protection Authority and other authorities to get action against Ausgrid.

References[edit]

External links[edit]