Union warns on jobs, service

Written By Unknown on Senin, 05 November 2012 | 19.55

A FULL retail market for Tasmanian electricity will lead to inferior service and job losses, the union representing call centre workers has warned.

The Australian Services Union has warned the State Government's plan to privatise the retail arm of state electricity sector will lead to job losses.

ASU assistant secretary Igor Grattan said the experience from other states swapping to retail contestability had not been good for workers or consumers.

"If we can learn anything from the other states that have gone down this path, it is that this move can only lead to massive job losses and lesser services, with little if any savings to the consumer," Mr Grattan said.

"With the down turn in jobs in Tasmania, we cannot afford to export hundreds of call centre jobs to the mainland.

"Since privatisation in South Australia and Victoria, the two states have risen to become the proud title holders of the third and fifth highest-priced electricity consumers in the world."

Mr Grattan said electricity companies won't compete to lose money in a small marketplace, and if something has to give it will be at the expense of services to the consumer.

"If there really are problems with the way the service is being run, maybe we should cast our eye on those running it.

"If the privatisation of the retail arm of the electricity sector goes ahead we will all be paying for it through the loss of Tassie jobs, inferior services and higher prices."

Mr Grattan's comments follow calls from energy expert Danny Price, the managing director of Frontier Economics, who told the Mercury last week energy retailers were being warned not to enter the state due to a wholesale market monopoly and concerns over the credit ratings of Aurora customers.

matthew.smith@news.com.au


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