Wholesales electricity company King’s Gas and Power will sell its wholesale electricity generating unit at the Winchester Mystery House to an independent power producer.
It is the latest step in a chain of privatisations that have been underway for the last few years and could mark a turning point in the transformation of the electricity industry in NSW.
“We’re very pleased with the outcome and very pleased that the owner of the Wholesaler has been chosen as the owner,” King’s CEO Andrew O’Connor said.
The unit, which is located on a site at King’s Wharf on the Kings River in Kingsford, will be sold to the Independent Power Producer (IPP), which is set to sell it in 2019 to the NSW Government.
The IPA will retain the lease on the property.
Mr O’Connor said it was a “huge win for the community and the business community in the area”.
“It means the whole of King’s Town and Kingsford is now at the mercy of an independent entity who are doing the right thing and will be able to continue to serve the community, he said.
Mr Abbott said the sale was “an example of the fact that the public sector should work closely with local communities and communities, to ensure that we have a strong electricity system”.
He said it would provide a “massive boost to our local economy”.
Mr OConnor said the unit was a small and inexpensive unit that could have a major impact on the town’s energy needs. “
We think it will be a very significant addition to our town,” he said, with $20 million going towards “our electricity infrastructure”.
Mr OConnor said the unit was a small and inexpensive unit that could have a major impact on the town’s energy needs.
“The whole point of the unit is to provide the opportunity for businesses to invest in their community and generate some revenue to offset the costs of maintaining the unit,” he told ABC Radio NSW.
He said the company would be looking to sell other existing units in Kingsville, Gosford and King’s Park as well.
“A lot of the units in those areas are not competitive and are very expensive to run and it’s just about how can we provide a more efficient energy system,” he added.
King’s gas and power has been privatised since 2001.
In 2014, it sold its wholesale power unit at Wincokee and was sold to an Independent Power Operator (IoO) in December 2016.
The IoO bought the wholesale unit in December 2017 for $20.6 million.